Current Account Deficit Shrinks by 4.4% in First Half of Fiscal Year 2019

The current account deficit reduced by 4.4 percent during the period of July to December 2018 compared with the corresponding period of last year.

Current account deficit is one of the biggest indicators of Pakistan’s economy besides foreign exchange reserves and Rupee’s position against Dollar. The decline in the current account deficit is a good factor for the economy and the present government.

According to State Bank of Pakistan, the current account deficit decreased by $370 million for the first half of FY2019 to reach $7.98 billion as compared with $8.35 billion recorded in the corresponding period of FY2018.

The deficit improved on the back of a declining trade deficit and increasing remittance inflows during the period.

The overall deficit in trade of commodities and services decreased to $17.49 billion from $17.50 billion from the previous financial year. On the other hand, remittance inflows grew by $974 million to reach $9 billion in the period of July to December.

The present government has been taking strict measures to contain the trade deficit by controlling imports. It also took various initiatives to promote exports and remittance inflows to bring stability to the current account on a long-term basis.

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