Pakistan's current account deficit contracts 90pc to $0.24bn in Jan
Business
The deficit has declined 16.55pc as compared to December’s $0.29bn
KARACHI (Dunya News) - The country's current account deficit contracted 90.2 per cent to $0.24 billion in January this year from $2.47bn in the corresponding month of 2022.
The data shared by the State Bank of Pakistan (SBP) shows that the deficit has declined 16.55pc as compared to December’s $0.29bn.
The central bank on Monday reported that cumulatively, the country recorded a CAD amounting to $3.799bn in Jul-Jan FY23 compared to $11.558bn in the same period of the previous fiscal year, a decline of $7.75bn.
“CAD recorded $0.2 billion in January 2023 against a deficit of $2.5 billion in January 2022,” the central bank said.
Current Account Deficit (CAD) recorded $ 0.2 billion in Jan 2023 against a deficit of $2.5 billion in Jan 2022. https://t.co/q3LNv3HgLshttps://t.co/Od8ikVvpBF pic.twitter.com/C3v9k4pZDb
— SBP (@StateBank_Pak) February 20, 2023
The decline comes as Pakistan moved to restrict imports, curtailing the opening of letters of credit for a variety of sectors much to the dismay of businesses who rely on inward shipments for their operations.
Pakistan's foreign exchange reserves have also depleted to critical levels, at less than a month of import cover.
The coalition government is currently engaged in talks with the International Monetary Fund (IMF) for the resumption of the stalled Extended Fund Facility (EFF) programme.
