Pakistan’s Current Account Deficit Narrows but Remains in Deficit

Pakistan’s current account could not achieve a surplus but did see a significant reduction in the deficit, according to the latest data released by the State Bank of Pakistan for the first month of the current fiscal year.

In July 2024, the country faced a current account deficit of $162 million, a substantial 78% decrease compared to the $740 million deficit recorded in July 2023.

Comparing month-to-month, the July 2024 deficit was 48% lower than the $313 million deficit in June 2024. However, experts noted that the July 2024 deficit exceeded expectations, primarily due to an increase in the trade deficit.

The trade deficit in July 2024 was 11% higher than in June 2024, contributing to the ongoing current account shortfall, according to experts.