Pakistan reports Current account deficit of $773mn in July 2021 as compared to the compared to a deficit of $1.6 bln in Jun21. While, a surplus of US$583mn in July 2020 was recorded. The deficit is in line with SBP’s expectations of a current account deficit of 2-3 pct of GDP as economic activity continued to progress.
Despite the recent increase in CAD, SBP’s foreign reserves position continued to strengthen on monthly basis. This is in contrast to past trends and is supported by country’s market-based exchange rate system.