Pakistan: Key Economic Indicators Going From Bad To Worse – OpEd
Pakistan’s Current Account Deficit (CAD) during January 2023 was reported at US$242 million as compared to US$290 million in December 2022.
The country’s trade deficit during the month under review was down 11%MoM to US$1.7 billion.
Imports dropped by 7% to US$3.9 billion and exports were down 4% to US$2.2 billion.
A 17%MoM decrease of in CAD is mainly attributed to lower trade deficit of goods.
Remittances declined by 10%MoM to US$1.9 billion. This is likely due to global economic slowdown and difference between Interbank and Open Market/Kerb rates.
Foreign exchange reserves of the country in January 2023 were down 23%MoM to US$8.7 billion.
The reserves held by State Bank of Pakistan (SBP) were down 45%MoM to US$3.1 billion.
CPI inflation in January 2023 surged to 27.6% as against 24.5% in December 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.