In October 2023, Pakistan’s current account deficit was $74 million, according to data that was made public on Monday by the State Bank of Pakistan (SBP).
Pakistan’s Current Account Deficit Decreased
The CAD was substantially less, or more than 91%, on an annual basis than the $849 million recorded in the same month the previous year.
Nonetheless, the deficit was 61% greater on a monthly basis than the $46 million recorded in September.
Current Account Deficit improved significantly to $1.1 billion during Jul-Oct FY24 compared to $3.1 billion during Jul-Oct FY23.https://t.co/q3LNv3HOB0https://t.co/Od8ikVvXrd#SBPBOP pic.twitter.com/KBpk8Zeonx
— SBP (@StateBank_Pak) November 20, 2023
Pakistan’s Exports Increased in 2023
The country’s exports (goods and services) rose by 18% to $3.418 billion in October 2023 from $2.902 billion in October 2022, according to data from the central bank.
Conversely, overall imports decreased by 3% to $5.17 billion in October 2023 from $5.35 billion in the corresponding month of the previous year.
The State Bank of Pakistan (SBP) reports that from July to October of FY24, Pakistan’s current account deficit was $1.06 billion, down from $3.1 billion in the same period in FY23. This represents a significant decline of more than $2 billion.
SBP’s Monetary Policy Committee Meeting
The current account balance has significantly improved, according to the central bank, which reported at its most recent Monetary Policy Committee (MPC) meeting on October 30.
The deficit decreased by more than 58% year over year to $947 million in July through September of FY24, and it nearly leveled out in September of 2023.
For cash-strapped Pakistan, which depends largely on imports to power its economy, the current account is an important statistic.
According to the most recent data, an expanding deficit puts pressure on the currency rate and depletes the government’s foreign exchange reserves, which were just over $7.6 billion.
To read our blog on “Current Account Deficit will be at $4.5 bn, Pak tells to IMF,” click here.