- Pakistan’s current account deficit was USD162mn during July ’24, declining by 78%YoY/48%MoM. The service deficit declined by 39%YoY/61%MoM to USD159mn, along with an improvement in the balance of primary income. We believe the decline in using financial services from abroad, along with repayments of pending dividends/profits of foreign companies, reduces the outflow from the country.
- On the other hand, the trade deficit increased by 20%YoY/11%MoM to USD2,428mn. Imports increased by 16%YoY/4%MoM to USD4,819mn, and exports increased by 13%YoY/-2%MoM to USD2,391mn in Jul’24.
- In the total imports, the imports of machinery goods increased by 105% YoY/44% MoM to USD898mn, similar to the Agri. & Other Chemical and Food Groups imports surged by 20% MoM and 27% MoM, respectively. The Petroleum Group imports reduced by 16 %MoM to USD1224mn but mounted 40 %YoY (USD350mn).
- The exports swelled by 13%YoY/-2%MoM to USD2,391mn, mainly due to the increase in Food group exports by 46%YoY/4%MoM to USD545mn. In this group, sugar and Vegetables posted phenomenal growth. Moreover, cement exports also increased by 21%YoY to USD23mn in Jul’24.
- During July ’24, remittances increased by 48% year over year to USD2,995mn, in contrast to USD2,029mn in SPLY. The remittance increase was led by inflows from the UAE, Saudi Arabia, and the GCC.
