ISLAMABAD           -      Pakistan’s current account deficit has shrunk by 68 percent to $567 million in October mainly due to the continuous reduction in imports. The current account deficit (CAD) has increased by 56 percent to $567 million in October this year from $363 million in September, according to the latest data of State Bank of Pakistan (SBP). “CAD was $ 0.57 billion in Oct 2022 against a deficit of $0.36 billion in Sep 2022. Continuous decline in imports helped improve the current account deficit (CAD) during first four months of FY23,” SBP said in tweet on Monday. The data showed that the CAD was recorded at $2.8 billion during four months (July to October) of the current fiscal year as against $5.3 billion in the same period of the previous year. The country’s imports have declined by 11.6 percent or $2.7 billion and exports have enhanced by 2.6 percent or $0.2 billion during the first four months of the current fiscal year. According to the data, the exports of goods increased from $9.56 billion in Jul-October 2021-22 to $9.8 billion in the same period of the current fiscal year. On the other hand, the imports of goods decreased from $23.32 billion to $20.6 billion in the period under review. The overall trade deficit also shrank to $10.8 billion in the first four months of FY2023 as compared to the deficit of $13.75 billion in the same period of the previous fiscal year. Similarly, the trade deficit in services narrowed to $812 million in July-October as compared to $1.3 billion in the same period of the previous year. Finance Minister Ishaq Dar on Saturday said that the government is monitoring and managing it for the national interest. The current account deficit was $316 million in September and projected to remain below $400 million in October. “If this continues at the same pace then it will be around $5-6 billion for the year [while] the projected was $12 billion,” the finance minister said. According to the ministry of finance, the balance of trade in goods and services improved in September 2022. This was mainly attributed to a decline in imports, which was brought on by slower growth, government restrictions, and negative seasonal effects. Also, exports declined slightly due to sluggish foreign demand and domestic supply issues may have played a more important role. The outlook for the next month revealed that the trade balance will improve in the coming months on account of import contraction due to a deceleration in domestic economic activities and aggregate demand. However, exports scenario may improve due to revival of infrastructure in flood areas of the country. Remittances are expected to revert back to around the level of US $ 2.7 billion. Therefore, in the baseline scenario, the current account balance is expected to move to equilibrium or even a slight surplus.