Pakistan's current account deficit decreases as imports grind to near standstill
In less than a month, cash-strapped Pakistan’s currency has lost more than a quarter of its value against the US dollar after the removal of artificial caps, and fuel prices have risen by more than a fifth as the government implemented fiscal measures required to unlocking funds from an Internationa
- Pakistan’s current account deficit (CAD) dropped to $0.2 billion in January 2023, down 90% from last year as the rupee's depreciation slowed down imports, the central bank said on Monday.
In less than a month, cash-strapped Pakistan’s currency has lost more than a quarter of its value against the US dollar after the removal of artificial caps, and fuel prices have risen by more than a fifth as the government implemented fiscal measures required to unlocking funds from an International Monetary Fund (IMF) bailout.
During the first seven months of the current fiscal year, the country’s current account deficit decreased by 67% to $3.8 billion, compared with a deficit of $11.6 billion during the same period last year.
“This monthly deficit is lowest after 25 months, and lower than expectations,” said Mohammad Sohail, CEO of Topline Securities. Sohail, citing the falling currency. The weaker currency has made imports more expensive, effectively slashing them.
More from WorldTahir Abbas, Head of Research at Arif Habib Limited said that imports under machinery group and transport group have gone down 47% and 61% respectively was primarily due to stringent administrative measures taken by the State Bank of Pakistan (SBP) in addition to the an economic slowdown.
Read all the Latest News, Trending News, Cricket News, Bollywood News,
India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.
Pakistan resorts to its military-terror nexus in a bid to neutralise Munir critic, JUI-F chief Rehman: Report
No premium queues, 30-minute target: What changes for Indian passport applicants in UAE
'We don't need straits': Trump says Iran war isn't about Hormuz as US strikes for 12th night
Iran claims to stop three oil tankers transiting Strait of Hormuz
Globe at a glance: From Houthis striking Saudi tankers in Red Sea to wildfires in Europe