Current account posts $773 million deficit in July

KARACHI: The current account deficit has been recorded at $773 million in July 2021.

The State Bank of Pakistan (SBP) on Friday issued details of the balance of payments. According to the SBP, the current account posted a surplus of $583 million in the same month of the last year.

The imbalance in the current account may be attributed to higher trade deficit during the month under review.

The trade deficit was recorded at $3.1 billion in July 2021, compared with the deficit of $1.67 billion, showing an increase of 85.53 per cent.

The exports of the country recorded 16.44 per cent growth to $2.33 billion in the first month of the fiscal year 2021/22, compared with $2 billion in the same month of the last year.

The import bill grew 48 per cent to $5.43 billion in the month under review, compared with $3.67 billion in the same month of the last fiscal year.

However, the inflows of workers’ remittances offset a major deficit in the current account. The central bank received $2.71 billion as workers’ remittances in July 2021. The remittances continued their trend remaining over $2 billion for the 14th consecutive month.

This is the second highest-ever level of remittances reported in July, according to the SBP.

The country posted a current account deficit of $1.62 billion in June 2021. The full-year 2020/21 current account deficit stood at $1.82 billion.

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