A decrease in the energy imports of Pakistan has made the Current Account Deficit to shrink from $2.2 billion in June to $1.2 billion in July 2022. Data acquired by WealthPk from the State Bank of Pakistan showed that the sharp decline in current account deficit is because of decrease in energy imports and also a decline in the imports of other non-essential goods.

Data analysis revealed that exports of goods increased from $2.235 billion in July 2021 to $2.295 billion in July 2022. For the same months last year and this year, imports increased from $5.371 billion to $5.385 billion respectively. The overall trade deficit also shrank because increase in exports was greater as compared to an increase in the imports of good, thus leading to a contraction in trade deficit. The trade deficit in July 2022 stood at $3.090 billion as compared to the deficit of $3.136 billion in the same month last year.

Same holds true for the trade deficit in services. It clocked in at $260 million in July 2022 as compared to the deficit of $287 million in July 2021, showing a decrease of $27 million.

Primary income, however, did not see a decrease in its deficit. Rather the deficit of primary income increased in the past 12 months. It increased from $289 million last year to $403 million.

The combined deficit of goods, services and primary income edged up to $3.753 billion in July 2022, while during the same month of last year, the deficit was recorded at $3.712 billion. This year, workers’ remittances also decreased to $2.524 billion as compared to $2.736 billion in July 2021.

Credit: Independent News Pakistan-WealthPak