KARACHI: Pakistan’s current account deficit (CAD) narrowed to $0.2 billion in January 2023, down 90 percent from a year earlier as the depreciation of the rupee reduced imports, the central bank said on Monday. .
In less than a month, the cash-strapped country’s currency has lost more than a quarter of its value against the US dollar since the artificial caps were removed, and fuel prices have risen by more than a fifth as The government has implemented fiscal measures. Unlocking funds from the International Monetary Fund (IMF) bailout.
The country’s current account deficit narrowed 67 percent to $3.8 billion during the first seven months of the current fiscal year, from $11.6 billion in the same period last year.
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
“This monthly loss is the lowest in 25 months, and is below expectations,” said Mohammad Sohail, CEO of Topline Securities. Citing the depreciating currency, Sohail said the weak currency has made imports more expensive, effectively reducing them.
Tahir Abbas, Head of Research, Arif Habib Limited, said that the imports under Machinery Group and Transport Group have decreased by 47% and 61% respectively mainly due to strict administrative measures of State Bank of Pakistan (SBP). Is. Economic slowdown.
