Current Account deficit shrinks by 65% in January 2021

KARACHI: The State Bank of Pakistan (SBP) has observed a reduction of 65% in the volume of the current account deficit in January 2021.

According to the released stats, the current value of the current account deficit has been recorded at $229mn against the value of $652mn recorded in December 2020.

The decrease in the current account deficit is linked to the increasing influx of remittances, the rising activity of exports, and the reduction in imports.

Furthermore, the current account has recorded the surplus-value of $912mn in the first seven months of FY-21 and has shown significant recovery from the deficit of $2,544mn.

Moreover, the Balance of Trade in the services sector is recorded at $1115mn in the July-Jan period of FY-21 against the recorded deficit of $1893mn in the same period last year.

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