Current account deficit down by 61pc in October

The current account deficit for October 2023 widened significantly by 60.87% MoM to stand at $74 million compared to the deficit of $46m in September 2023, State Bank of Pakistan (SBP) data revealed today.

On a yearly basis, the current account deficit showed an improvement of 91% YoY, as the deficit stood at $849m in the same month last year.

Total exports rose by 10.47% MoM and 17.78% YoY to $3.42bn as compared to the total exports of $3.1bn in the previous month and $2.9bn in the same month of last year.

Total imports rose by 7.86% MoM to $5.17bn as compared to the imports worth $4.8bn recorded in September, while the imports showed a decline of 3.36% YoY when compared to the numbers of October of last year.

Meanwhile, on a cumulative basis, the current account deficit in the 4MFY24 was recorded at $1.06bn, showing a significant improvement of 66% YoY when compared to the deficit of $3.11bn in 4MFY23.

Furthermore, the workers’ remittances improved by 11.55% MoM to $2.46bn as compared to $2.21bn in the previous month; while on a yearly basis, the remittances went up by 9.56% YoY as it stood at $2.25bn in October 2022.

Cumulatively in 4MFY24, workers’ remittances were recorded at $8.8bn as compared to $10.15bn in 4MFY23, depecting a fall of 13.31% YoY.

However, despite these measures, inflows were recorded at lesser than the street expectations for the month.