Pakistan's CAD shrinks to $2.2bn from $3.5 in first quarter of FY23

KARACHI: Pakistan’s current account deficit (CAD) recorded a downward trend for the third month in a row as a result of lower imports and a rise in exports, State Bank of Pakistan (SBP) data showed.

The SBP from its official Twitter handle said: “In September, the current account deficit (CAD) declined for the 3rd month in a row. It fell to $0.3 billion, less than half the level in August. In Q1FY23, the CAD has fallen to $2.2 billion from $3.5 billion in Q1FY22, mainly reflecting a decline in imports.”

In September, the current account deficit (CAD) declined for the 3rd month in a row. It fell to $0.3bn, less than half the level in August. In Q1FY23, the CAD has fallen to $2.2bn from $3.5bn in Q1FY22, mainly reflecting a decline in imports. https://t.co/q3LNv3pFmS pic.twitter.com/B0SgTMhWJF

— SBP (@StateBank_Pak) October 19, 2022

Read more: SBP maintains policy rate at 15pc

Earlier, the State Bank of Pakistan’s Monetary Policy Committee (MPC) decided to maintain the interest rate at 15 percent for the next seven weeks.

According to a statement issued on Twitter, the MPC noted the continued deceleration in economic activity as well as the decline in headline inflation and the current account deficit since the last meeting.