WAR ANGST: According to statistics from the State Bank of Pakistan (SBP), Pakistan’s current account deficit fell by 91% in October compared to the same month last year. This was due to higher exports, lower imports, and money sent back to Pakistan by Pakistanis living abroad.
The country’s imbalance went down to $74 million in October because its exports rose by 21% year-over-year to $2.762 billion and its imports fell by 7% to $4.346 billion.
In October, Pakistanis who worked outside of Pakistan sent home $2.463 billion, which was 10% more than the previous month.
However, the current account deficit grew by 61% in October compared to the previous month. This was mostly because of a bigger trade gap caused by a rise in imports.
The deficit in October was higher than the 46% deficit in September. However, experts pointed out that this was the second month in a row that the current account balance was almost equal to zero.
The country’s imports went up by 9% in October. Because of the war in the Middle East, oil prices around the world have been very unstable, which seems to have caused Pakistan’s import bill to go up. The small rise in imports is also a sign that the country’s economy’s overall demand is getting better.
In October, the country’s exports of things went up by 12% and its money sent back home went up by the same amount. The current account deficit of Pakistan shrunk by 66% in the first four months of this fiscal year, from July to October, to $1.1 billion. This was mostly because the government wanted to keep the trade deficit and, by extension, the current account deficit at a level that could be maintained even though foreign exchange stocks were low.