Pakistan's current account deficit shrinks to $1.2bn in July

KARACHI The Current account deficit (CAD) of Pakistan has reduced to $1.2 billion in July, the State Bank of Pakistan (SBP) said on Wednesday.

According to the monthly report published by the Central Bank on the balance of payments, on a Month-on-Month basis, the difference between imports and exports shrank by 44.6% during the first month of the fiscal year 2023 and fell to $1.2 billion from $2.2 billion recorded in June of FY22.

1/2 The current account deficit shrank to $1.2bn in Jul from $2.2bn in Jun, largely reflecting a sharp decline in energy imports & a continued moderation in other imports. Visit #EasyData https://t.co/kiWKKJLduD pic.twitter.com/Kt3Ev5BjMt

— SBP (@StateBank_Pak) August 23, 2022

In its statement, the SBP attributed this fall in the current account deficit to a sharp decline in energy imports and continued moderation in other imports.

Earlier, the State Bank of Pakistan (SBP) decided to keep the benchmark policy rate unchanged at 15 per cent for the next six weeks.

The monetary policy committee (MPC) met under the chair of Deputy Governor Syed Murtaza and reviewed the economic indicators.