Pakistan’s Current Account Deficit Shrinks By 91% in October 2023

Pakistan’s current account deficit (CAD) contracted by 91 percent year-on-year (YoY) in October to just $74 million from $849 million in the same period last year, according to data released by the State Bank of Pakistan (SBP) on Monday. On a month-on-month basis, the CAD in October 2023 rose by $28 million compared to a deficit of $46 million recorded in September. The month-on-month increase in October 2023 stood at 61 percent while on a year-on-year basis, the current account deficit is down by 91 percent. The country’s total exports in October 2023 stood at $3.4 billion, up 18 percent YoY and 10.5 percent MoM. On the other hand, imports stood at $5.2 billion, up 8 percent month-on-month and 3.4 percent year-on-year. Workers’ Remittances sent by overseas Pakistanis stood at $2.46 billion in October 2023, an improvement of 11.5 percent over the previous month and up by 9.5 percent compared to the same month of FY23. The current account deficit for the first four months of the current fiscal year (4MFY24) stood at $1.059 billion, down 66 percent compared to a deficit of $3.1 billion recorded in the same period last year.