According to statistics provided by the State Bank of Pakistan (SBP) on Monday, the current account deficit decreased 68.13 per cent year over year to $0.57 billion in October.

In comparison to September, when it stood at $0.36 billion, the deficit jumped by 56.2 per cent, reaching its highest level since April 2021.

According to the figures, the deficit for the first four months of the current fiscal year was $2.8 billion, down 46.82 per cent from $5.3 billion from July to October 2021.

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According to the central bank, “continued import drop helped improve the current account imbalance.”

When compared to the same quarter in FY22, imports fell by $2.7 billion (11.6 per cent) and exports increased by $0.2 billion (2.6 per cent).

The current account deficit increased month over month despite a remark made last week by Finance Minister Ishaq Dar that it was anticipated to be below $0.4 billion.

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Dar said that the deficit was being closely watched, managed, and handled for the good of the nation.

“The current account deficit was at $316m in September and expected to be below $400m in October,” he said, adding, “If this continues at the same pace, it will be around $5-6bn for the year, (while) the projected was $12bn.”

The deficit was not at a worrying level, the finance minister stressed.

Pakistan had a huge current account deficit of $17.3 billion, or an average of $1.44 billion per month, in the preceding fiscal year.