Islamabad: Pakistan’s current account deficit for July 2024 stood at $162 million, marking a significant 78% year-on-year decrease and a 48% reduction from the previous month. The decline was attributed to a softer primary income deficit and a lower trade balance.

According to JS Global, the trade balance for the month reached a 22-month low, remaining 30% above the recent average, despite the import and export figures remaining steady. Exports were reported at $2.4 billion, and with imports totaling $4.8 billion as per the State Bank of Pakistan (SBP), the trade deficit also stood at $2.4 billion. However, remittances maintained a robust $3 billion, supporting the higher import levels. Notably, there was a rare discrepancy between the SBP’s reported imports, which were $540 million higher than those reported by the Pakistan Bureau of Statistics (PBS), leading to a PBS-reported trade deficit of $2 billion.

The balance of payments (BoP) also reverted to a deficit of $152 million, in contrast to a $500 million surplus in June 2024. This shift was driven by lower financial account support and net payments of $370 million by the government, despite steady foreign investment inflows of $310 million. This compares to net receipts of $548 million and significant loan inflows in June.