CAD clocks in at $3.8bn in 7MFY23: SBP

February 20, 2023 (MLN): Pakistan posted a current account deficit (CAD) of $3.8 billion in 7MFY23, improving by 67.13% YoY as compared to the same period last year, the central bank data showed today.

In the month of January 2023, CAD narrowed by 90% YoY and 16.55% MoM to $242 million compared to $2.46mn in January 2022 and $290mn in December 2022.

It is pertinent to note that the country witnessed a 23 months low CAD this month.

The trade deficit in goods narrowed by around 54% YoY and 11% MoM to $1.17bn in January 2023 as the import of goods declined by 37% YoY and 7% MoM to stand at $3.92mn in the review period. 

Meanwhile, the trade balance in services remained in surplus, down by 79% MoM to clock in at $18mn compared to $86mn in December 2022.

In the same period last year, the trade balance in services witnessed a deficit of $597mn.

Meanwhile, the worker’s remittances fell by 13% YoY and 10% MoM in January 2023 to $1.89bn from $2.18bn in January 2022 and 2.1bn in December 2022.

On a cumulative basis during July-Jan FY23, remittances by overseas Pakistanis moved down by 11% YoY to $16bn from $17.98bn recorded in July-Jan FY22.

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