CAD narrows to $3.67bn in 1HFY23: SBP

January 18, 2023 (MLN): Pakistan posted the current account deficit (CAD) of $3.67 billion in the first half of the ongoing fiscal year, improving by 60% YoY as compared to the same period last year, the central bank data showed today.

In the month of December 2022, CAD narrowed by 78% YoY to $400 million whereas, on monthly basis, it worsened by 59% compared to $252mn in November 2022.

The trade deficit in goods narrowed by around 8% MoM to $1.92bn in December 2022 as exports of goods improved by nearly 2% MoM while imports saw a marginal drop of 3% MoM. Similarly, on yearly basis, the trade deficit in goods shrank by 45% during the review month.

Meanwhile, the trade balance in services remained in surplus, widened by 37% MoM to clock in at $48mn compared to $35mn in November 2022.

In the same period last year, the trade balance in services witnessed a deficit of $426mn.

Meanwhile, the worker’s remittances fell by 19% YoY and 3% MoM in December 2022 to $2.04bn from $2.52bn in December 2021 and 2.1bn in November 2022.

On a cumulative basis during July-Dec FY23, remittances by overseas Pakistani moved down by 11% YoY to $14.05bn from $15.8bn recorded in July-Dec FY22.

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