Trade deficit and current account deficit dropped sharply in first 3 months of 2022-23
The current account deficit fell from $3.5 billion to $2.2 billion in the first quarter of 2022-23 financial year compare to last financial year
The efforts of federal government to control the trade and current account deficit are bearing fruits. Both the trade deficit and current account deficit is declining sharply. The measures adopted by the government to bring down the imports are working well.
In September, the current account deficit (CAD) declined for the 3rd month in a row. It fell to $0.3bn, less than half the level in August. In the first quarter of current financial year, the CAD has fallen to $2.2bn from $3.5bn compare to the first quarter of last financial year. In the first three months of current financial year, the current account deficit has fallen $1.3 billion. The main reason of this fall is the decline in the imports.
According to
the data released by Pakistan Bureau of Statistics (PBS), Pakistan’s trade deficit recorded in the first
quarter of the fiscal year 2023 declined 21.32% on a year-on-year basis. The trade
deficit from July2022 to September 2022 stands at $9.2 billion. The deficit was
$11.7 billion during the same period of FY22, that is a sharp 21.32% drop.
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In September
alone, the trade deficit was recorded at $2.9 billion, falling from August’s
$3.58 billion. The imports in September fell to $5.34 billion from $6 billion
on a month-on-month basis. Exports, however, also recorded a slight decline on a
month to month basis in September as they fell to $2.44 billion from $2.48
billion.
It should also be noted that the trade deficit of Pakistan recorded a whopping 55.9% increase during the last fiscal year ended in June 2022. The total trade deficit was $48.38 billion during the 2021-22 financial year.
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