ISLAMABAD-State Bank of Pakistan has reported more than 50 percent decline in the current account deficit in first two months of 2019-20. During July-August 2019, the CAD has dropped to 1.44 billion dollars, from 3.06 billion dollars in the same months in 2018. Thus in dollars, the country has saved 1.62 billion dollars current account deficit mainly through steady decline in imports in two months of this financial year. In July-August 2019 the trade deficit has plummeted to 4.6 billion dollars, from 6.78 billion dollars in the corresponding months of 2018.
Declining trade and current account deficit will ease pressure on country’s foreign exchange, exchange rate of rupee and minimize government’s dependence on borrowings in 2019-20.