ISLAMABAD: The State Bank of Pakistan has reported $13.77 billion current account deficit in 10 months of the ongoing fiscal year.
However, in the month of April 2022, the country’s current account deficit narrowed significantly, to $623 million, which is two-thirds of the deficit reported in March 2022.
The significant reduction in imports by $246 million and an increase in remittances by $315 million left a positive impact on the situation of the worrisome deficit that had spiraled out of control in the previous month.
In April 2022 the current account deficit stood at $623 million. The trade deficit of goods and services increased to $36.5 billion during the period of July to April of the current fiscal year as compared to $24.1 billion in the previous fiscal year.
In his tweet, Finance Minister Miftah Ismail said that decline in the current account imbalance in April was a good sign for external stability. He said, “With positive IMF talks underway, we expect a turnaround in the economic situation very soon.”
Finance Minister further said, “I am truly grateful to all the foreign multinationals that operate in Pakistan, pay a large amount of taxes, provide employment and bring in technology. However I request all of them to present to me a plan to export out of Pakistan also. I will give them tax breaks for that.”
The State Bank of Pakistan has reported $145 million further decrease in its reserves last week as its total reserves stood at $10.16 billion.
The government has notified ban on the import of 38 categories involving thousands of items with effect from May 20 (Friday), which would further bring down the current account deficit and imports in the months ahead.
