- Increase in Custom Duty on luxury goods, Currency Depreciation bringing down Imports
- Steps were taken by Govt to bring CAD down proving fruitful
Pakistan’s Current account deficit (CAD) declined by 29% to $12.7 billion in July-May FY19 period compared to $17.9 billion in the same period last year.
The main reason for the decline in the Current Account deficit was a substantial decline in Trade Deficit which declined to $30.05 billion in 11MFY19 as compared to US$34.2 billion.
For the month of May, Current Deficit significantly decreased by 47% to US$1.08 billion as compared to US$ 2.06billion deficit in April-19.
Last year, Pakistan witnessed the highest Current Account Deficit in its history when it posted a Current Account Deficit of US$18bn in FY18. Fixing of the Rupee exchange rate led to significant Deficit last year. Resultantly, Rupee witness sharp devaluation on the hands of market forces.