Pakistan’s current account deficit (CAD) decreased by 86 percent on ayear-on-year (YoY) basis to clock in at $74 million in February 2023, datareleased by the State Bank of Pakistan (SBP) showed on Monday.
The country recorded a current deficit of $0.52 billion during the sameperiod of the previous fiscal year (FY22). At $74 million, this monthlydeficit is the lowest in 24 months, according to Arif Habib Limited.
The current account deficit decreased by 68 percent YoY basis to clock inat $3.86 billion in July-February FY2022-23 (8MFY23), compared to the$12.07 billion recorded in the first eight months of FY22.
On a month-on-month (MoM) basis, the current account deficit decreased by$0.16 billion or 68 percent to $0.074 billion, compared to the $0.23billion recorded in January 2023.Import/LCs issue
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The low CAD is on the back of import restrictions imposed by thegovernment. The restrictions have been in place since June 2022 and sincethen, restrictions on letters of credit (LCs) have crippled a number ofindustries dependent on imports.
