Prime Minister Imran Khan revealed on Friday that the country’s current account deficit had shrunk to $0.5 billion in February, the lowest monthly deficit recorded this fiscal year.
The premier took to his official Twitter handle to state that “timely action to contain current account deficit” had borne fruit, and that the current deficit was lower than that of Jan and of the FY22, “so far”.
Timely actions to contain current account deficit bear fruit.Deficit shrank to only $0.5bn in Feb,$2bn lower than in Jan & lowest monthly deficit so far this fiscal yr.Exports close to all-time high & imports down 21% from their peak & strong growth in large scale manufacturing.
— Imran Khan (@ImranKhanPTI) March 19, 2022
He further stated that exports were close to an all-time high, while imports were down 21% from their peak. PM Imran added that there was also a “strong growth” in large scale manufacturing.
Federal Minister for Planning and Development Asad Umar also tweeted about the “great news” of the “sharp reduction”.
The minister maintained that exports remained strong and imports were moderating, while growth continued in large scale manufacturing.
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
— Asad Umar (@Asad_Umar) March 19, 2022
Umar hoped for the second “successive year of 5% plus” gross domestic product (GDP) growth, adding that this was the first time in 15 years that this was happening.
The State Bank of Pakistan (SBP) on Saturday released data that showed that the current account deficit fell sharply in February 2022 to $0.5bn, the lowest in FY22 and only one-fifth the level in January.
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 the 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.
In Feb, the current account deficit fell sharply to $0.5bn, the lowest in FY22 and only one-fifth the level in Jan. Exports were close to all-time highs, rising 16% compared to Jan. Imports fell by 18% to their lowest level in FY22. For details, see https://t.co/Od8ikVvpBF pic.twitter.com/9SUPSLbPTC
— SBP (@StateBank_Pak) March 19, 2022
According to the details, the exports of goods rose to $2.9 billion 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 shrunk to $2.281 billion compared to the deficit of $3.8 billion in January 2022.
With input from APP