Current account deficit shrinks in July-April

KARACHI: Pakistan’s current account deficit narrowed to $8.547 billion during the 10 months to April compared with $11.173 billion in the same period a year earlier, the State Bank of Pakistan said on Monday.

Analysts said the main reason for the narrowing in the shortfall was lower global commodity prices.

For the month of April, the current account recorded a deficit of $457 million compared with a revised deficit of $243 million in March.

‘The reason for a higher deficit in April as compared to March is due to slowdown in current transfers and also because of monthly fluctuations in imports,’ said Asif Qureshi, head of research at Invisor Securities Ltd.

Pakistan’s trade deficit narrowed to $1.43 billion in April, compared with $2.30 billion in April last year, data showed last week.

Pakistan entered an emergency International Monetary Fund programme for a 23-month emergency loan of $7.6 billion in November to avert a balance of payment crisis.