The current account deficit shrank 68.13 per cent year-on-year to clock in at $0.57 billion in October, data released by the State Bank of Pakistan (SBP) showed on Monday.

On a month-on-month basis, the deficit increased by 56.2pc from September’s figure of $0.36bn, which had been the lowest level since April 2021.

The data showed that the deficit during the first four months of the current fiscal year stood at $2.8bn, narrowing 46.82pc from $5.3bn during July-October 2021.

The central bank said a “continuous decline in imports helped improve the current account deficit”.

During the first four months of FY23, imports dipped by $2.7bn or 11.6pc while exports rose by $0.2bn or 2.6pc compared to the same period last year.

The month-on-month rise in the current account deficit is in contradiction to Finance Minister Ishaq Dar’s statement last week saying that it was expected to be below $0.4bn.

Dar said the deficit was under strict watch and being monitored and managed for the sake of national interest.

“The current account deficit was at $316m in September and expected to be below $400m in October,” he said, adding, “If this continues at the same pace, it will be around $5-6bn for the year, (while) the projected was $12bn.”

The finance minister reassured that the deficit was not at a concerning level.

Pakistan posted a massive current account deficit of $17.3bn in the previous fiscal year, or a monthly average of $1.44bn.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Dangerous times
Updated 14 Feb, 2025

Dangerous times

Pakistan accounted for six journalist killings in 2024, of which three were deliberately murdered, according to the CPJ.
Difficult target
14 Feb, 2025

Difficult target

A ONE-two punch delivered by an unforeseen, sharp dip in inflation and an extremely slim base of taxpayers is...
Amazing show
14 Feb, 2025

Amazing show

PAKISTAN’S ability to turn it up at the flick of a switch remains uninhibited. The latest show came in...
Trump’s folly
Updated 13 Feb, 2025

Trump’s folly

This latest pronouncement only reinforces the fears of those who see the plan as a blueprint for ethnic cleansing.
Corruption ranking
13 Feb, 2025

Corruption ranking

IT comes as little surprise. Transparency International’s Corruption Perceptions Index for 2024, unveiled on...
Support from remittances
13 Feb, 2025

Support from remittances

EVEN though workers’ remittances dipped, albeit negligibly, in January on a month-over-month basis, the earnings...