Current account deficit (CAD) during Jan 2023 clocked in at US$242mn versus US$290mn in Dec 2022. Trade deficit during Jan 2023 was down 11% MoM to US$1.7bn as imports dropped by 7% to US$3.9bn and exports were down 4% to US$2.2bn. A MoM decrease of 17% in CAD is mainly attributed to lower trade deficit of goods.

Further, remittances declined by 10% MoM to US$1.9bn. This is likely due to global economic slowdown and difference between Interbank and Open Market/Kerb rates.

Foreign exchange reserves of the country in Jan 2023 was down 23% MoM to US$8.7bn where reserves held by SBP were down 45% MoM to US$3.1bn.

CPI inflation in Jan 2023 surged to 27.6% as against 24.5% in Dec 2022. Pakistan total debt & liabilities in 2QFY23 clocked in at 85.18% as % of GDP vs. 84.28% same period last year. On other hand, external debt & liabilities increased to 38.15% in 2QFY23 vs 37.62% in 2QFY22.

Courtesy – Topline Securities