Current Account Surplus Shrinks to Just $18 Million in April

The country’s current account posted a surplus of $18 million in April 2023, significantly lower than the surplus of $654 million (revised to $750 million) posted in March 2023. According to data released by the State Bank of Pakistan (SBP), cumulatively the current account deficit (CAD) reduced to $3.258 billion in July-April FY23 against a deficit of $13.654 billion in July-April FY22.   The current account balance is the difference between the government’s foreign income and expenditure, to put it simply a current account deficit occurs when the government’s foreign income is less than expenditure while a current account surplus occurs when foreign income exceeds expenditure. In March, the country’s current account posted a surplus for the first time since November 2020. During FY22, Pakistan’s current account deficit stood at $17.481 billion. The country’s current account deficit for the first month of the current fiscal year (FY23) i.e. July 2022 was recorded at $1.26 billion.