Pakistan's current account deficit drops by 68% in October 2022 on YoY basis

The country’s current account deficit, on a year-on-year basis, dropped by 68% after the State Bank of Pakistan and the government’s measures, ARY News reported. 

1/2 CAD was $ 0.57 billion in Oct 2022 against a deficit of $0.36 billion in Sep 2022. Continuous decline in imports helped improve the Current Account Deficit (CAD) during first four months of FY23. pic.twitter.com/SgkolTu4GV

— SBP (@StateBank_Pak) November 21, 2022

According to the data provided by the SBP, the country’s current account deficit 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 grew by 56% on a month-to-month basis. The CAD 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 has caused an improvement in the current account deficit. The CAD, in the four months from July to October, has dropped by 47%.

The CAD in the corresponding four months last year was $5.30 billion.

Also Read: Pakistan’s current account deficit shrinks to $1.2bn in July

According to the SBP, during Jul-Oct 2022, CAD was $2.8 billion (against $5.3 billion) as imports reduced by $2.7 billion (or 11.6%) and exports increased by $0.2 billion (or 2.6%) compared to Jul-Oct 2021.