According to data made public by the State Bank of Pakistan (SBP) on Monday, the current account deficit decreased 68.13% year over year to total $0.57 billion in October.
The deficit grew 56.2 percent month over month from September’s level of $0.36 billion, which had been the lowest level since April 2021.
The data revealed that the deficit for the first four months of the current fiscal year was $2.8 billion, down 46.82 percent from $5.3 billion for the period of July to October 2021.
The current account deficit was improved, the central bank claimed, by a “continued drop in imports.”
Exports increased by $0.2 billion or 2.6 percent during the first four months of FY23 compared to the same time previous year, while imports decreased by $2.7 billion, or 11.6 percent.
Despite Finance Minister Ishaq Dar’s assertion that it was anticipated to be below $0.4 billion last week, the current account deficit has increased month over month.
Dar claimed that for the benefit of the country, the deficit was being closely monitored, regulated, and managed.
Continuing, he stated, “If this continues at the same pace, it will be around $5-6bn for the year, (whereas) the forecast was $12bn. The current account deficit was at $316m in September and predicted to be below $400m in October.”
The deficit was not at a worrying level, the finance minister assured.
Pakistan had a huge current account deficit of $17.3 billion, or an average of $1.44 billion per month, in the preceding fiscal year.