KARACHI: Pakistan’s current account deficit has narrowed to $3.1 billion during first five months (July – November) of fiscal year 2022-2023, according to data released by the State Bank of Pakistan (SBP) on Friday.
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Pakistan current account deficit narrows by 47pc in 4MFY23
Current Account Deficit (CAD) of Pakistan narrowed by 47 per cent in first four months (July – October) of fiscal year 2022-2023 (4MFY23), according to Balance of Payment (BoP) details released by State Bank of Pakistan (SBP) on Monday.
The CAD contracted to $2.82 billion during first four months of the current fiscal year as compared with the deficit of $5.31 billion in the corresponding months of the last fiscal year.
READ MORE: Current account deficit declines by 37% to $2.21 billion in first quarter
Contraction in current account deficit may be attributed in significant fall in import bill of the country, which resulted in narrowing the trade deficit.
The import bill of the country fell by 16 per cent to $21.09 billion during first four months of the current fiscal year as compared with $25.08 billion in the same period of the last fiscal year.
READ MORE: Pakistan current account deficit narrows by 19% in July – August
On the other hand exports recorded a nominal growth of one per cent to $9.56 billion during the period under review as compared with $9.46 billion in the same period of the last fiscal year.
This resulted in contraction of trade deficit by 26 per cent to $11.53 billion during July – October 2022 when compared with $15.62 billion in the same period of the last fiscal year.
READ MORE: Pakistan current account deficit widens by 42% in July 2022
However, inflows of remittances declined by 8.6 per cent to $9.9 billion during first four months of the current fiscal year. The inflow of remittances has been recorded at $9.9 billion during July – October of current fiscal year 2022/2023 as compared with $10.83 billion in the corresponding period of the last fiscal year.
READ MORE: Pakistan’s FY22 current account deficit widens to $17.41 bn
The current account deficit in the month of October 2022 recorded at $547 million, which is widened compared with the deficit of $363 in September 2022. However, it was narrowed with compared with $1.78 billion in October 2021.
The CAD sharply widened to $17.41 billion in the fiscal year 2021/2022 from $2.82 billion in fiscal year 2020/2021.
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Current account deficit declines by 37% to $2.21 billion in first quarter
KARACHI: Pakistan’s current account deficit has recorded a decline of 37 per cent to $2.21 billion during first quarter (July – September) of fiscal year 2022/2023, according to official data released on Wednesday.
The current account deficit of the country was $3.53 billion in the same quarter of the last fiscal year.
READ MORE: Pakistan current account deficit narrows by 19% in July – August
State Bank of Pakistan (SBP) on Wednesday issued the summary of balance of payments for the first quarter of the current fiscal year.
Contraction in current account deficit can be attributed to significant fall in trade deficit. The trade deficit also contracted by 21.32 per cent to $9.22 billion during first quarter of the current fiscal year as compared with the deficit of $11.72 billion in the same quarter of the last fiscal year.
READ MORE: Pakistan current account deficit widens by 42% in July 2022
Import bill of the country for the quarter under review sharply declined by 12.37 per cent to $16.4 billion as compared with $18.71 billion in the corresponding quarter of the last fiscal year.
On the other hand, exports of the country recorded an increase of 2.62 per cent to $7.18 billion during July – September of the current fiscal year as compared with $6.99 billion in the same period of the last fiscal year.
READ MORE: Pakistan’s FY22 current account deficit widens to $17.41 bn
However, inflow of home remittances slipped by 6.34 per cent to $7.68 billion during first quarter of the current fiscal year 2022-2023. The inflow of remittances was $8.2 billion in the corresponding quarter of the last year.
The balance of payment posted a deficit of $316 million in the month of September 2022 which was much lower to the deficit of $1.15 billion in the same month of the last year. The deficit is also lower when compared with the deficit of $676 million in the month of August 2022.
READ MORE: Pakistan’s CAD balloons to $15.19 billion in 11 months
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Pakistan current account deficit narrows by 19% in July – August
KARACHI: Pakistan current account deficit recorded a contraction of 19 per cent during first two months (July – August) of the current fiscal year 2022/2023, according to data released by State Bank of Pakistan (SBP) on Wednesday.
The current account deficit during the period under review was at $1.92 billion as compared with $2.37 billion in the corresponding months of the last fiscal year.
READ MORE: Pakistan current account deficit widens by 42% in July 2022
The contraction in current account deficit may be attributed to narrowing trade deficit during the period under review.
The trade deficit of the country recorded a decline of 16.36 per cent to $6.33 billion during July – August 2022/2023 as compared with the deficit of $7.56 billion in the corresponding period of the last fiscal year, according to Pakistan Bureau of Statistics (PBS).
READ MORE: Pakistan’s FY22 current account deficit widens to $17.41 bn
Importantly, the import bill of the country fell by 9 per cent to $11.06 billion during the first two months of the current fiscal year as compared with $12.15 billion in the same months of the last fiscal year.
On the other hand, the export exhibited an increase of 3.27 per cent to $4.74 billion during July – August 2022/2023 as compared with $4.59 billion in the same period of the last fiscal year.
The contraction in trade deficit may be attributed to the ban imposed by the government on import of luxury and non-essential items. The government imposed the ban on May 19, 2022. But, it was later lifted on August 20, 2022.
READ MORE: Pakistan’s CAD balloons to $15.19 billion in 11 months
However, some restrictions on import of various goods are still there as those clearances are subject to prior approval of the SBP.
Meanwhile, the overall remittances sent by Pakistani workers declined by 3 per cent during first two months (July – August) 2022/2023. The overseas Pakistani workers sent $5.25 billion during first two months of the current fiscal year as compared with $5.42 billion in the same months of the last fiscal year.
READ MORE: Current account deficit swells to $13.78 bn in 10 months
The current account deficit for the month of August 2022 was $703 million as compared with the deficit of $1.52 billion in the same month of the last year. Whereas the deficit in August 2022 is also narrowed when compared with the deficit of $1.21 billion in the month of July 2022.
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Pakistan current account deficit widens by 42% in July 2022
Pakistan current account deficit (CAD) widened by 42 per cent in the first month (July) of the fiscal year 2022/2023 as compared with the same month of the last fiscal year, according to data released by the central bank on Wednesday.
According to the Balance of Payment (BoP) data issued by the State Bank of Pakistan (SBP), the current account deficit ballooned to $1.21 billion in July 2022 as compared with the deficit of $851 million in the same month of last year.
READ MORE: Pakistan’s FY22 current account deficit widens to $17.41 bn
However, the current account deficit narrowed in July 2022 when compared with the previous month. The current account deficit was recorded at $2.19 billion in June 2022.
Analysts at Arif Habib Limited said that the country posted current account deficit of $1.2 billion for the month of July 2022 compared to a deficit of $851 million during July 2021, up 42 per cent YoY.
On a YoY basis, the primary reason behind the deficit was an 8 per cent YoY decline in remittances along with a 0.4 per cent YoY increase in total imports to $6.2 billion.
READ MORE: Pakistan’s CAD balloons to $15.19 billion in 11 months
However, total exports increased by 4 per cent YoY during July 2022. On a MoM basis, CAD was significantly down (by 45 per cent) aided by a 27 per cent decline in Balance of Trade.
Workers’ remittances too posted a decline on MoM basis, down 9 per cent.
READ MORE: Current account deficit swells to $13.78 bn in 10 months
To recall, SBP had mentioned in its latest MPS that lower (MoM) imports on account of a decline in energy imports as well as non-energy imports, improved the current account position in July 2022. Albeit, exports too showed a decline on a MoM basis amid Eid Holidays and “emerging signs of slower global demand.”
READ MORE: Pakistan’s CAD hit $13.17 billion in July – March
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Pakistan’s FY22 current account deficit widens to $17.41 bn
KARACHI: Pakistan has posted $17.41 billion as current account deficit (CAD) for the fiscal year 2021/2022, according to data of balance of payment released by the State Bank of Pakistan (SBP) on Wednesday.
The country posted a deficit in the current account of $2.82 billion in the preceding fiscal year i.e. 2020/2021. It shows that the current account deficit of the country ballooned by over five times.
The widening of the current account deficit may be attributed to a surge in import bill during the fiscal year under review.
READ MORE: Pakistan’s CAD balloons to $15.19 billion in 11 months
The import bill of the country recorded an increase of 42.21 per cent to $80.18 billion during the fiscal year 2021/2022 as compared with $56.38 billion in the preceding fiscal year, according to Pakistan Bureau of Statistics (PBS).
However, the exports also posted an increase of 25.64 per cent to $31.79 billion during the fiscal year under review as compared with $25.30 billion a year ago.
But the massive rise in import bill resulted in a huge trade deficit. The country posted 55.70 per cent in widening of trade deficit to $48.38 billion during the year under review as compared with the deficit of $31.07 billion in the preceding fiscal year.
READ MORE: Current account deficit swells to $13.78 bn in 10 months
Even the record remittances during the year have failed to curtail the current account deficit. The Pakistani workers sent record high remittances amounting $31.24 billion during the fiscal year 2021/2022 as compared with $29.45 billion in the preceding fiscal year.
Meanwhile, the total investment into Pakistan recorded a 61 per cent decline to $1.79 billion in the fiscal year 2021/2022 as compared with $4.58 billion in the preceding fiscal year.
The inflow of foreign private investment into the country fell 27 per cent to $1.48 billion during the fiscal year under review as compared with $2.03 billion in the preceding fiscal year.
READ MORE: Pakistan’s CAD hit $13.17 billion in July – March
The major component of the foreign private investment i.e. Foreign Direct Investment (FDI) posted an increase of 2.6 per cent to $1.87 billion during the fiscal year 2021/2022 as compared with $1.82 billion a year ago.
However, the foreign investment in the capital market recorded a massive decline of 288 per cent. The capital market witnessed an outflow of $388.4 million during fiscal year 2021/2022 as compared with an inflow of $206.6 million in the preceding fiscal year.
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Pakistan’s CAD balloons to $15.19 billion in 11 months
KARACHI: The current account deficit (CAD) of Pakistan has massively widened to $15.19 billion during 11 months (July – May) of 2021/2022, State Bank of Pakistan (SBP) said Tuesday.
The data of balance of payment (BoP) showed the current account deficit was $1.18 billion in the corresponding months of the last fiscal year.
READ MORE: Current account deficit swells to $13.78 bn in 10 months
The massive widening in current account deficit may be attributed to the high trade deficit on back of significant increase in import bill.
The trade deficit of the country increased by 58.18 per cent to $43.42 billion during July – May 2021/2022 as compared with $27.45 billion in the corresponding period of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS).
READ MORE: Pakistan’s CAD hit $13.17 billion in July – March
The import bill of the country surged by 44.51 per cent to $72.29 billion during first 11 months of the current fiscal year as compared with $50 billion in the same months of the last fiscal year.
However, export earnings of also grew by 28 per cent to $28.87 billion during the period under review as compared with $22.57 billion in the same period of the last fiscal year.
READ MORE: Pakistan’s CAD mounts to $12 billion in eight months
Meanwhile, inflows of workers remittances posted a six per cent growth to $28.41 billion during 11 months of the current fiscal year as compared with $26.73 billion in the corresponding months of the last fiscal year.
The current account deficit for the month of May 2022 also widened to $1.425 billion as compared with the deficit of $618 million in April 2022 and the deficit of $640 million in May 2021.
READ MORE: Current account deficit widens to $11.58 bn in 7MFY22
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Current account deficit swells to $13.78 bn in 10 months
KARACHI: Pakistan’s current account deficit swelled to $13.78 billion during first 10 months (July – April) of the current fiscal year 2021/2022, State Bank of Pakistan (SBP) said on Friday May 20, 2022.
The balance of payment (BoP) witnessed a deficit of $543 million in the same period of the last fiscal year.
READ MORE: Pakistan’s CAD hit $13.17 billion in July – March
The balance of trade posted a deficit of $32.95 billion during the first 10 months of the current fiscal year as compared with the deficit of $22 billion.
The total trade deficit in both goods and services ballooned to $36.52 billion as compared with the deficit of $24.11 billion in the corresponding period of the last fiscal year.
READ MORE: Pakistan’s CAD mounts to $12 billion in eight months
Balance of primary income recorded a deficit of $41.05 billion during the period under review as compared with $27.83 billion in the corresponding period of the last fiscal year.
READ MORE: Current account deficit widens to $11.58 bn in 7MFY22
The inflows of workers’ remittances increased to $26.08 billion during July – April 2021/2022 as compared with $24.23 billion in the same period of the last fiscal year.
The current account deficit narrowed to $623 million in April 2022 as compared with $1.02 billion in March 2022. The current account deficit in April 2021 was $268 million.
READ MORE: Pakistan’s current account deficit balloons to $9.1 bn
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Pakistan’s CAD hit $13.17 billion in July – March
KARACHI: Pakistan’s current account deficit (CAD) hit record $13.17 billion during first nine months (July – March) 2021/2022, according to balance of payment (BoP) data released on Saturday.
The current account deficit for July – March 2021/2022 widened to $13.169 billion as compared with the deficit of $275 million in the corresponding months of the last fiscal year, the State Bank of Pakistan (SBP) said.
READ MORE: Pakistan’s CAD mounts to $12 billion in eight months
The massive widening of current account deficit may be attributed to sharp increase in imports and repayment of external debt.
The trade deficit widened by 71 per cent to $35.52 billion during first nine months of the current fiscal year as compared with $20.8 billion in the corresponding period of the last fiscal year, according to Pakistan Bureau of Statistics (PBS).
READ MORE: Current account deficit widens to $11.58 bn in 7MFY22
Import bill of the country recorded an increase of 49 per cent to $58.87 billion during July – March 2021/2022 as compared with $39.49 billion in the same period of the last fiscal year. On the other hand exports of the country also grew by 25 per cent to $23.35 billion during the first nine months of the current fiscal year as compared with $18.68 billion in the corresponding period of the last fiscal year.
The inflows of workers remittances increased to $22.95 billion during July – March 2021/2022 as compared with $21.43 billion in the corresponding period of the last fiscal year.
READ MORE: Pakistan’s current account deficit balloons to $9.1 bn
The current account deficit for the month of March 2022 widened to $1.028 billion as compared with the deficit of $369 million in the last year and deficit of $519 million in February 2022.
Pakistan’s current account deficit had reached dollar $4.45 billion in fiscal year 2019/2020. However the deficit shrank to $2.82 billion in fiscal year 2020/2021.
READ MORE: Pakistan’s CAD balloons to $7.1 billion in five months
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Ukraine crisis, political unrest major threats to economy
ISLAMABAD: The ministry of finance on Tuesday warned aggravating Pakistan’s macroeconomic imbalances due to political unrest in the country and geopolitical uncertainty on Ukraine crisis.
The finance ministry in monthly report stated Pakistan’s economic performance continues to be strong and is still on a trajectory compatible with an economic growth target of around 5 percent in the current fiscal year. “Its cyclical position has returned to a more neutral stance. If this trend continues in the next months, economic growth will be driven primarily by the expansion of manufacturing capacity. However, the intensity of internal and external risks has still not been exactly realized which may adversely affect domestic economic activities.”
READ MORE: Pakistan’s foreign exchange reserves fall to $21.44 billion
The finance ministry said that inflation and the current account deficit are still under pressure. The government is taking measures to limit as much as possible further increases in the cost of living in the coming months. Moreover, the government measures designed to stimulate exports and discourage unnecessary imports are expected to contribute to constrain current account deficit.
“The recent geopolitical tensions, in particular the Ukraine crisis, is the most important external risk factor. Likewise, domestic political conditions are building domestic risks,” it said.
“A further escalation of these risks could hamper the positive outlook for Pakistan’s economy and may also aggravate the macroeconomic imbalances,” it added.
READ MORE: IMF to agree on Pakistan’s industrial promotion package
The report said that the first seven months of the current fiscal year have witnessed significant pressure on fiscal accounts due to rising expenditures under grants and subsidies. In addition, the PSDP spending has also witnessed a significant rise of 37 per cent.
On the revenue side, FBR tax collection has been able to achieve more than 65.2 per cent of its annual target during the first eight months of the ongoing fiscal year.
However, the government has announced a relief package for the masses to offset the impact of increasing oil prices. “These are collectively adding risks to the fiscal sector.”
READ MORE: Pakistan signs deal to explore largest gold reserves
Notwithstanding measures to improve tax collection and expenditure management will help in containing the fiscal deficit at a manageable level and keeping the primary balance at a sustainable level.
According to Balance of Payment (BOP) data, the trade deficit in goods and services declined considerably; from $ 4.3 billion in Jan 2022 to $ 2.6 billion in February 2022. Exports of goods and services that unexpectedly declined in January have resumed their upward trend in February.
Imports of goods and services were at all-time highs in December and January, but declined substantially in February, helped by negative seasonal effects.
In March 2022, exports are expected to continue their upward trend, backed by the export-oriented policies that have been implemented in the recent past.
READ MORE: Pakistan’s CAD mounts to $12 billion in eight months
The stabilizing of the Real Effective Exchange will also help exports in keeping the rising trend. Imports will probably return to a level that is more in line with domestic economic activity and the levels of international commodity prices. As a result, the trade balance may less deteriorate in March 2022 as well. However, geopolitical risks still persist.
In January and February, remittance inflows declined to lower levels mainly due to negative seasonality. In March they are expected to revert to normal levels. Taking these factors into account, as well as its other components, the current account deficit is expected to stay well below the unsustainable levels observed during the period from August 2021 up to January 2022.