SBP reports a massive decline
ISLAMABAD: The State Bank of Pakistan today reported a massive decline in the current account deficit in the fiscal year 2022-23. It is an outcome of a huge decline in imports due to curbs and a shortage of foreign exchange.
In the fiscal year 2022-23, the current account deficit fell to 2.91 billion dollars, from 17.82 billion dollars in the preceding financial year.
Meanwhile, in the month of June, the State Bank reported 315 million dollars surplus current account.
In FY23, the imports fell to 52 billion dollars, from 71.54 billion dollars in FY22. In the US dollars, the decline in imports amounted to 19.54 billion dollars.
This is one of the major reasons for a substantial decline in the current account deficit.
The trade deficit also fell to 24.80 billion dollars in 2022-23, from 44.90 billion dollars in 2021-22. It led to a relief of 20.10 billion dollars to Pakistan in the last fiscal year.
Chinese bank rolls over $600 million loan
Meanwhile, Prime Minister Shehbaz Sharif said that a Chinese bank had extended a $600 million loan to Pakistan. He said that it will provide a much-needed boost to the country’s foreign exchange reserves.
PM Shehbaz stated this on Tuesday at the launch of the Prime Minister’s Youth Sports Initiative in Islamabad. Shehbaz Sharif also pledged to allocate additional funds for youth development if re-elected.
Prime Minister highlighted that the recent assistance from friendly countries, including the rollover of the loan from the Exim Bank of China, has positively impacted Pakistan’s economic indicators.
However, he did not provide specific details regarding the timing of the loan repayment.
Pakistan has shown signs of economic stability following the approval of a $3 billion bailout program by the International Monetary Fund (IMF).
The first tranche of $1.2 billion has already been disbursed under a nine-month stand-by arrangement.
Furthermore, Pakistan received $1 billion from the United Arab Emirates and $2 billion from Saudi Arabia. It reflected the confidence of these countries in the agreement reached between Islamabad and the IMF in June.
