Business
Current account posts $254 million deficit in July | The Express Tribune
KARACHI:
Pakistan’s current account (CA) posted a deficit of $254 million in July 2025, according to the latest figures released by the State Bank of Pakistan (SBP) on Tuesday.
Last month, the country recorded a CA surplus of $335 million, while in July 2024, the deficit had stood at $348 million.
The SBP data shows a CA deficit of $254 million in July 2025, reflecting a notable improvement compared to the $348 million deficit recorded in July 2024. This marks a year-on-year reduction of $94 million, indicating a positive shift in the country’s external sector dynamics as the new fiscal year begins. However, the monthly CA data from July 2024 to July 2025 highlights a period of mixed performance, with several months showing strong surpluses that helped offset periods of modest deficits.
The fiscal year began with three consecutive months of deficits; July ($0.35 billion), August ($0.08 billion), and September 2024 ($0.04 billion). However, this was followed by a shift in October 2024, which recorded a surplus of $310 million. The external position continued to improve in November and December 2024, with surpluses of $720 million and $470 million, respectively.
In early 2025, the trend briefly reversed. January 2025 posted the highest monthly deficit of the year at $380 million, followed by a smaller deficit of $80 million in February. March 2025 marked a strong recovery, as Pakistan recorded its highest monthly surplus during the period at $1.28 billion, reflecting either a surge in exports, remittances, or possibly one-off inflows.
The CA remained relatively stable in the closing months of the fiscal year, with April 2025 posting a marginal surplus of $20 million, May returning to a small deficit of $80 million, and June rebounding with a surplus of $340 million.
Speaking to The Express Tribune, JS Global Head of Research Waqas Ghani said, “The shortfall of $254 million in July 2025 as opposed to a surplus of $335 million last month was driven primarily by a widening trade deficit, as a strengthening domestic economy spurred a rebound in imports.”
He expected the CA to end the fiscal year in deficit, driven by the pickup in imports. Even so, stable global commodity prices should help limit import pressures, while resilient workers’ remittances are likely to anchor external stability.
He anticipated a further buildup in foreign exchange reserves going forward, with workers’ remittances expected to exceed $40 billion in FY26. Ghani believed that the sustained inflow of remittances are driven by a shift towards official channels which are a key support to the CA. He projected the external financing requirements for FY26 to remain broadly in line with last year’s levels.
REER
The Real Effective Exchange Rate (REER) index appreciated to 98.6 in July 2025, up from 96.6 in June 2025, according to data released by the SBP. This two-point increase reflects a slight strengthening of the rupee in real terms against a basket of trading partner currencies.
While the REER remains below the benchmark level of 100, the recent appreciation suggests a marginal rise in the relative value of the Pakistani rupee, which could impact export competitiveness if the trend continues. Nonetheless, the REER is still broadly aligned with historical averages, indicating relative external stability.
Meanwhile, the local currency extended its winning streak on Tuesday, August 19, 2025, appreciating 0.02% against the US dollar in the interbank market. The local currency closed at 281.96, strengthening slightly from the previous day’s rate of 282.02.
This marks the eighth consecutive session of gains for the rupee, reflecting continued stability in the foreign exchange market and improved sentiment around the economy.
The government on Thursday kept petrol and high-speed diesel (HSD) prices unchanged at Rs253.17 per litre and Rs257.08 per litre respectively, for the coming fortnight, starting from January 16.
This decision was notified in a press release issued by the Petroleum Division.
Earlier, it was expected that the prices of all petroleum products would go down by up to Rs4.50 per litre (over 1pc each) today in view of variation in the international market.
Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts the budgets of the middle and lower-middle classes.
Meanwhile, most of the transport sector runs on HSD. Its price is considered inflationary, as it is mostly used in heavy transport vehicles, trains, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, and particularly adds to the prices of vegetables and other eatables.
The government is currently charging about Rs100 per litre on petrol and about Rs97 per litre on diesel.
One of Britain’s most prolific rail fare dodgers could face jail after admitting dozens of travel offences.
Charles Brohiri, 29, pleaded guilty to travelling without buying a ticket a total of 112 times over a two-year period, Westminster Magistrates’ Court heard.
He could be ordered to pay more than £18,000 in unpaid fares and legal costs, the court was told.
He will be sentenced next month.
District Judge Nina Tempia warned Brohiri “could face a custodial sentence because of the number of offences he has committed”.
He pleaded guilty to 76 offences on Thursday.
It came after he was convicted in his absence of 36 charges at a previous hearing.
During Thursday’s hearing, Judge Tempia dismissed a bid by Brohiri’s lawyers to have the 36 convictions overturned.
They had argued the prosecutions were unlawful because they had not been brought by a qualified legal professional.
But Judge Tempia rejected the argument, saying there had been “no abuse of this court’s process”.
JSW Jetour T2 Launch: JSW Motors Limited, the passenger vehicle arm of the JSW Group, is reportedly preparing to enter the Indian car market this year. It has partnered with Jetour, a China-based automotive brand owned by Chery Automobile, and the Jetour T2 SUV could be the company’s first product, according to the reports.
Media reports suggest that the launch will happen independently and not under the JSW MG Motor India joint venture. The SUV will wear a JSW badge and name, instead of the Jetour branding. The upcoming SUV will be assembled at JSW’s upcoming greenfield manufacturing facility in Chhatrapati Sambhaji Nagar, Maharashtra.
According to the reports, the company plans to have the vehicle on sale by the third quarter of this year. With this move, JSW aims to establish itself as a standalone carmaker in India.
Expected Powertrain
The SUV is likely to arrive with a 1.5-litre plug-in hybrid setup. Internationally, this hybrid powertrain is offered with both front-wheel drive and all-wheel drive options. It is still unclear which version will be introduced in India.
Design
In terms of design, the T2 is a large and rugged-looking SUV. It has a boxy and upright stance, similar to vehicles like the Land Rover Defender. Despite its tough appearance, it uses a monocoque chassis instead of a ladder-frame construction.
Size
The SUV measures around 4.7 metres in length and nearly 2 metres in width. This makes it larger than the Tata Safari, even though it is a five-seater. A longer 7-seat version is also sold in some markets.
Price
Pricing details for India are yet to be announced. For reference, the front-wheel-drive five-seat T2 i-DM is priced at AED 1,44,000 (around Rs 35 lakh) in the UAE.
Jetour
Jetour is a brand owned by Chinese automaker Chery. Launched in 2018, it focuses mainly on SUVs and is present in markets across China, the Middle East, Africa, Southeast Asia and Latin America.
Xreal files patent suit against rival smart glasses maker Viture
Princess Kate crowned England’s Great with fiery Lioness spirit
Soshiotsuki wows with international debut at Pitti Uomo 109
-
Politics1 week agoUK says provided assistance in US-led tanker seizure
-
Entertainment1 week agoDoes new US food pyramid put too much steak on your plate?
-
Entertainment1 week agoWhy did Nick Reiner’s lawyer Alan Jackson withdraw from case?
-
Business1 week agoTrump moves to ban home purchases by institutional investors
-
Sports5 days agoClock is ticking for Frank at Spurs, with dwindling evidence he deserves extra time
-
Sports1 week agoPGA of America CEO steps down after one year to take care of mother and mother-in-law
-
Business1 week agoBulls dominate as KSE-100 breaks past 186,000 mark – SUCH TV
-
Sports6 days ago
Commanders go young, promote David Blough to be offensive coordinator