Current account deficit shrinks 78% of Pakistan

KARACHI: The State Bank of Pakistan has stated that Pakistan’s current account deficit has significantly reduced by 78 percent in the fiscal year 2020.

The current account deficit stood at 1.1 percent of GDP in FY20, according to a statement issued by the Central Bank of Pakistan. At the end of the fiscal year 2020, the current account deficit stood at 2.66 billion.

According to the SBP, the current account deficit at the end of the fiscal year 2019 was 13.43 billion, which was recorded at 4.8 percent of GDP.

By the end of the fiscal year 2020, goods worth 22.5 billion were exported and imports were worth 42.41 billion.

At the end of the fiscal year 2020, remittances were recorded at 23.12 billion, while exports at the end of the fiscal year 2019 were 24.25 billion. At the end of the fiscal year 2019, goods worth 51.86 billion were imported.

It may be recalled that last week, the State Bank of Pakistan had stated that a record level of remittances had been received in June this year.

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According to the SBP, remittances increased significantly by 50.7 percent during June. Remittances of 63 1,636.4 million were received in June 2019. 

According to a central bank statement, remittances increased by 6.4 percent this year compared to last year. From March to June 2020, remittances increased by 7.8 an over the previous fiscal year.