In October 2023, the current account deficit experienced a significant widening, increasing by 60.87% MoM to reach $74 million, compared to the $46 million deficit reported in September 2023, according to data released by the State Bank of Pakistan (SBP).
On a yearly basis, there was a notable improvement, with the current account deficit showing a 91% YoY decrease, standing at $849 million in the same month the previous year.
Total exports demonstrated positive trends, rising by 10.47% MoM and 17.78% YoY, reaching $3.42 billion in comparison to $3.1 billion in the preceding month and $2.9 billion in the same month the previous year.
Total imports increased by 7.86% MoM, totaling $5.17 billion, as opposed to the $4.8 billion recorded in September. However, imports saw a 3.36% YoY decline compared to October of the previous year.
Looking at a cumulative basis, the 4MFY24 current account deficit stood at $1.06 billion, showcasing a significant 66% YoY improvement compared to the $3.11 billion deficit in 4MFY23.
Furthermore, workers’ remittances saw an 11.55% MoM increase to $2.46 billion, compared to $2.21 billion in the previous month. On a yearly basis, remittances went up by 9.56% YoY, reaching $2.25 billion in October 2022.
Cumulatively in 4MFY24, workers’ remittances were recorded at $8.8 billion, showing a 13.31% YoY decline from $10.15 billion in 4MFY23.
Despite these positive trends, the recorded inflows for the month fell below street expectations.
