Current account balance posts $773m deficit in July

KARACHI: Pakistan’s current account balance (CAB) posted a deficit of $773 million in the first month of the current fiscal year, the State Bank of Pakistan (SBP) said on Friday.

In contrast, the central bank said, CAB posted a deficit of $1.6 billion in June 2021.

“This deficit is in line with SBP’s expectations of a current account deficit of 2-3 pct of GDP as economic activity continued to progress,” it said.

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Despite the recent increase in the country’s current account deficit (CAD), the SBP said its foreign reserves position continued to strengthen on a monthly basis.

“This is in contrast to past trends and is supported by country’s market-based exchange rate system.”

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Earlier today, SBP said its foreign exchange reserves saw an increase of $3 million on a weekly basis.

On August 13, the foreign reserves held by the central bank were recorded at $17,625.9 million, showing an increase of $3 million when compared with $17,622 million recorded on July 30.

Overall liquid foreign currency reserves held by the country, including net reserves held by commercial banks, stood at $24,668.1 million million. Net reserves held by banks were recorded at $7,042.2 million.