Pakistan’s current account deficit drastically shrinks mainly due severe import restrictions
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Pakistan’s current account deficit decreased by over 85 percent on a year-on-year (YoY) basis to clock in at $0.28 billion in November, data released by the State Bank of Pakistan (SBP) showed on Friday.
The country had posted a deficit of $1.9 billion in November 2021. On a month-on-month (MoM) basis, the current account deficit decreased by 51 percent, compared to the $0.57 billion recorded in October.
The data released by the central bank showed that the deficit during the first five months of the current fiscal year (5MFY23) declined by 57 percent to $3.1 billion, compared to a deficit of $7.2 billion recorded during the first five months of the previous fiscal year (5MFY22).
In its brief statement shared on Twitter, the central bank highlighted that during the five-month period the country’s imports have decreased by $4.8 billion while exports have remained broadly unchanged.
After falling to $0.36 billion in September due to stringent import restrictions, the deficit had surprisingly risen in October to $0.57 billion.
