ISLAMABAD: The current account deficit fell sharply in February, 2022 to $0.5bn, the lowest in FY22 and only one-fifth the level in January, a data released by State Bank of Pakistan (SBP) said on Saturday.
The data shows that the current account deficit plunged from $2.53 billion in January 2022 to $545 million in February while during seven months (Jul-Feb) of current fiscal year, the current account deficit was recorded at $12.1 billion.
“The exports were close to all-time highs, rising 16% compared to Jan. Imports fell by 18% to their lowest level in FY22,” the SBP said on its official twitter handle.
According to detail the exports of goods rose to $2.9 billion in February in February from $2.5 billion in the preceding month.
The imports on the other hand fell sharply to $5.166 billion in February from $6.3 billion in the preceding month. The overall trade deficit also shrank to $2.281 billion compared to the deficit of $3.8 billion in January 2022.
Similarly the trade deficit in services also shrank to $284 million in February compared to the deficit of $485 million in January, whereas the primary income deficit also shrank to $287 million compared to $504 million in January.
Workers’ remittances also increased to $2.19 billion against $2.144 billion in January 2022 whereas the remittances during Jul-Feb (2021-22) also increased to $20.14 billion against $18.7 billion in same period of previous current fiscal year.
Meanwhile minister for Planning, Development and Special Initiatives Asad Umar in his tweet, termed the sharp reduction of current account deficit as a great news.
He said for first time in 15 years, the Pakistan’s economy was going to grow over 5 percent for two consecutive years.
“Great news with sharp reduction of current account deficit. Exports remain strong and imports moderating. Strong large scale manufacturing growth continues. Crop outlook also good. Inshallah 2nd successive year of 5% plus gdp growth. First time in 15 years this is happening,” he said.