Current account deficit shrank to $0.28bn from $0.57bn: SBP

KARACHI: Pakistan’s current account deficit has shrunk by over 50 per cent during the first five months of this fiscal year FY2022-23 from $0.57 billion in October to $0.28 billion in November 2022, ARY News reported on Friday.

According to the State Bank of Pakistan (SBP) statistics, the current account deficit shrank to $0.28 billion in November due to imports falling by $4.8 billion which is up to 16%, whereas, the exports broadly remained unchanged.

The statement read, “Cumulatively, during Jul-Nov22 it has contracted by more than half to $3.1bn against $7.2bn in Jul-Nov21”

In Nov22, the current account deficit shrank to $0.28bn from $0.57bn in Oct22. Cumulatively, during Jul-Nov22 it has contracted by more than half to $3.1bn against $7.2bn in Jul-Nov21, with imports falling by $4.8bn (-16%) & exports broadly unchanged. Link https://t.co/q3LNv3HgLs pic.twitter.com/wJymqbJqdn

— SBP (@StateBank_Pak) December 16, 2022

In October, the country’s current account deficit, on a year-on-year basis, dropped by 68% after the central bank and the government’s measures.

According to the data provided by the SBP, the country’s current account deficit had witnessed a drop of 68% in October 2022 in comparison to October 2021. The deficit came down from $1.78 billion in October 2021 to  $570 million in October 2022.

However, the deficit had grown by 56% on a month-to-month basis. The CAD had increased from $363 million in September 2022 to $570 million in October 2022.

A significant decrease in imports in the first four months of the fiscal year had caused an improvement in the current account deficit. The CAD, in the four months from July to October, has dropped by 47%.