Pakistan’s economy has received another jolt as the country’s current account slipped back into deficit in the month of October after showing improvement just a month earlier.
According to the latest data released by the State Bank of Pakistan (SBP), the current account recorded a deficit of $112 million in October. This marks a major departure from September’s $83 million surplus, raising fresh concerns about the sustainability of the country’s external sector.
The SBP report further highlighted that during the first four months of the current fiscal year, Pakistan’s current account has accumulated a total deficit of $730 million. This represents a 256% increase compared to the same period last year, signaling growing pressure on the balance of payments.
Economic experts attribute this deterioration primarily to a relaxed import policy, which has led to a widening trade gap and, consequently, a larger current account deficit.
Analysts note that the government was compelled to soften import restrictions following the International Monetary Fund’s (IMF) directives, which emphasized the removal of strict controls that had previously curbed external payments.
While easing import restrictions has facilitated business activity and relieved pressure on supply chains, it has also intensified the outflow of dollars at a time when Pakistan continues to face limited foreign exchange reserves.
