Pakistan’s Current Account Turns From Surplus to $809 Million Deficit

The country’s current account posted a deficit of $809 million in July 2023, compared to the surplus of $504 million posted in June. According to data released by the State Bank of Pakistan (SBP), the current account deficit (CAD) is down by 36 percent year-on-year against a deficit of $1.26 billion in July 2022. This drop comes after the current account returned surplus for four consecutive months between March-June 2023. During FY23, Pakistan’s current account deficit stood at $17.481 billion. A current account surplus occurs when foreign income exceeds expenditure. Last fiscal year’s restrictions on letters of credit (LCs) spread to all industries after the government decided to halt trade in exchange for a current account surplus.