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Pakistan’s current account deficit fell 90% to $0.2 billion in January




Pakistan's current account deficit fell 90% to $0.2 billion in January

A general view of Gwadar port in Pakistan


The central bank said on Monday that Pakistan’s current account deficit (CAD) is expected to come down to $0.2 billion in January 2023, which is 90 per cent less than last year.

In less than a month, the cash-strapped country’s currency has lost more than a quarter of its value against the US dollar after the artificial cap was removed, and fuel prices have risen by more than a fifth as the government has implemented the necessary fiscal measures to unlock. Money from an International Monetary Fund (IMF) bailout.

During the first seven months of the current fiscal year, the country’s current account deficit narrowed by 67% to $3.8 billion, compared to $11.6 billion in the same period last year.

“This monthly loss is the lowest after 25 months and is less than expected,” said Mohammad Sohail, CEO of Topline Securities. Sohail cited the falling currency. The weak currency has made imports more expensive, effectively reducing them.

Tahir Abbas, head of research at Arif Habib Ltd, said imports under machinery group and transport group went down by 47% and 61% respectively, mainly due to the stringent administrative measures taken by the State Bank of Pakistan (SBP). Is. financial crisis.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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