Karachi September 22 2022: Pakistan's Current Account Deficit (CAD) fell to $0.7bn in Aug compared to $1.2bn in July 2022, revealed by State Bank of Pakistan on Thursday.
Cumulatively, Jul-Aug FY23 CAD declined by $0.5bn to $1.9bn compared to the same period last year mainly due to increase in exports by $0.5bn and contraction in imports by $0.2bn.
Encouragingly, traded deficit narrowed by 4 percent in August to $2,937 million compared with $3,068 million in July on the back of 23 percent increase in exports despite 8 percent increase in imports of goods.
Earlier in July 2022, SBP has advised banks to seek prior permission before initiating transactions for import of Motor Cars (CKD), Mobile Phones (CKD) and machinery in order to manage dollar availability.
Meanwhile, the trade of balance in services, still negative, increased by 46 percent month-on-month on the back of a 17 percent increase in imports and to a 4 percent increase in exports. The trade of balance in services stood at $361 million in August compared to $260 million in July, the data showed.
Workers’ remittances recorded an inflow of US$2.7 billion during August 2022, increased by 7.9 percent on month on month and by 1.5 percent on year on year basis during August 2022. Remittance inflows during August were mainly sourced from Saudi Arabia ($691.8 million), United Arab Emirates ($531.4 million), United Kingdom ($369.7 million) and the United States($294.4 million).
Country Overall reserves increased by $439 million during the month on the back of $1.16 billion received from IMF and $243 million in other loans.