March 20, 2023 (MLN): Pakistan posted a current account deficit (CAD) of $3.8 billion in 8MFY23, improving by 68.03% YoY as compared to the same period last year, the central bank data showed today.
In the month of February 2023, CAD narrowed by 86% YoY and 67.8% MoM to $74 million compared to $519mn in February 2022 and $230mn in January 2023.
The trade deficit in goods narrowed by around 19.4% YoY and 1.34% MoM to $1.73bn in February 2023 as the import of goods declined by 22% YoY while on monthly basis, the import bill remained relatively flat at $3.93bn.
Meanwhile, the trade balance in services also remained negative, down by 90% YoY to clock in at $39mn.
To note, in January 2023, the trade balance in services witnessed a surplus of $18mn.
Meanwhile, the worker’s remittances fell by 9.47% YoY while on monthly basis, the remittances increased by 4.96% MoM to $1.988bn.
On a cumulative basis during 8MFY23, remittances by overseas Pakistanis moved down by 12.17% YoY to $20.18bn from $17.99bn recorded in 8MFY22.