According to data provided by the State Bank of Pakistan (SBP) on Monday, the current account deficit decreased 68.13% year over year to a total of $0.57 billion in October.
In comparison to September, when it stood at $0.36 billion, the deficit jumped by 56.2 percent, reaching its highest level since April 2021.
Using the statistics, it was determined that the deficit for the first four months of the current fiscal year was $2.8 billion, down 46.82 percent from the $5.3 billion it was from the period of July to October 2021.
According to the central bank, “continuous decline in imports helped improve the current account deficit.”
When compared to the same period in FY22, imports fell by $2.7 billion (11.6%) and exports increased by $0.2 billion (2.6%).
The current account deficit increased month over month despite a remark made last week by Finance Minister Ishaq Dar that it was anticipated to be below $0.4 billion.
Dar claimed that the deficit was being closely watched, handled, and treated for the good of the nation.
“The current account deficit was at $316m in September and expected to be below $400m in October,” he kept on adding, “If this continues at the same pace, it will be around $5-6bn for the year, (while) the projected was $12bn.”
The deficit was not at a worrying level, the Finance Minister emphasized.
In the preceding fiscal year, Pakistan had a significant current account deficit of $17.3 billion, or an average of $1.44 billion each month.