Pakistan’s current account deficit drops by 86% in February amid import curbs, currency depreciation

This picture taken on January 11, 2023, shows a general view of the Karachi sea port. (AF/File)
Short Url
Updated 22 March 2023
Follow

Pakistan’s current account deficit drops by 86% in February amid import curbs, currency depreciation

  • The country posted a deficit of $74 million as compared $519 million recorded last year in February
  • Remittance inflows, weakening currency are among factors that helped improve the deficit situation

KARACHI: Pakistan’s current account deficit (CAD) decreased by 86 percent to $74 million in February, hitting a two-year low due to a recent increase in remittances, import restrictions, and currency depreciation, according to official data and analysts.

The government imposed restrictions to process the import bill as it faced an extreme shortage of dollar liquidity and allowed only limited imports of goods to prevent a massive outflow of the greenback from the country.

According to the State Bank of Pakistan, the country recorded a current account deficit of $74 million last month, down 86 percent from a deficit of $519 million recorded in the same month last year.

The primary reason for the deficit’s decline was a 23.5 percent reduction in the country’s total imports on an annual basis, with total exports and remittances declining by 19 and nine percent during the same period, respectively.

During the eighth month of the current fiscal year, Pakistan’s deficit decreased by 68 percent to $3.9 billion, compared to a deficit of $12.1 billion recorded in the corresponding month last year.

“The $74 million CAD in February 2023 is the lowest monthly deficit since February 2021 due to a surge [by 4.9 percent] in the remittance inflows that supported the external position of the country,” Tahir Abbas, head of research at Arif Habib Limited, told Arab News on Tuesday.

“This is due to the continued impact of import curbs through strong administrative measures and currency depreciation,” he added. “Besides, the slowing economy is also a key reason behind the reduction in deficit.”

Pakistani banks are reportedly hesitant to open letters of credit (LCs) for goods imports, likely due to the government’s restrictive measures to prevent a significant outflow of dollars.

Pakistan’s import bill in February stood at $4.03 billion, according to the Pakistan Bureau of Statistics (PBS), down 17.25 percent from January’s $4.87 billion and 31.08 percent lower than February last year’s $5.85 billion.

Pakistan’s imports during July-February 2022-23 (FY23) totaled $40.12 billion, a 23.51 percent decrease from the corresponding period last year’s $52.45 billion.

PBS data show exports during the same period totaled $18.67 billion, a 9.21 percent decrease from last year’s $20.57 billion.

The import of oil posted a decline of 21 percent YoY in February, and the imports of mogas and high-speed diesel (HSD) decreased by 28 and 33 percent YoY, respectively, amid depressed demand.

Pakistani analysts said the import decline reflected the slowing economy, which was otherwise expected to grow by about one percent during the current fiscal year (FY23), and the depreciation of Pakistan’s national currency, which fell by more than five percent against the dollar in the last month alone.

“We expect that Pakistan’s GDP growth will remain between zero to one percent since demand remains depressed which is also reflected in the overall state of large industries that have posted negative growth,” Samiullah Tariq, research director at Pakistan-Kuwait Investment Company, told Arab News.

The import decline that improved the current account deficit is also attributed to the weakening of Pakistan’s national currency.

On Tuesday, the Pakistani rupee closed a little higher against the greenback at Rs283.92, compared to the previous closing of Rs284.03.

The stock that closed bearish on Tuesday also gained some support from the improving current account deficit number.

“Mid-session support was witnessed due to the upbeat data of $74 million current account deficit in February 2023 which fell by 68 percent on month-on-month basis,” Ahsan Mehanti, CEO of Arif Habib Corporation, said. “However, delays over IMF [International Monetary Fund] staff level agreement on bailout package, industrial closures over foreign exchange worries and political uncertainty played a catalyst role in the bearish close.”

Talks between cash-strapped Pakistan and IMF officials for the completion of the ninth review of a $7 billion bailout program have yet to be completed, despite a lapse of five months.

The completion of the review would pave the way for the disbursement of $1.2 billion from the fund, boosting the country’s foreign exchange reserves, which currently stand at $4.3 billion.


PSL 2025: Explosive Farhan smashes century as Islamabad thump Peshawar by 102 runs

Updated 14 April 2025
Follow

PSL 2025: Explosive Farhan smashes century as Islamabad thump Peshawar by 102 runs

  • Sahibzada Farhan smashes 106 runs from 52 balls, hitting 13 fours and five sixes in his innings
  • Islamabad United’s Imad Wasim returns figures of 3/26, Shadab Khan 2/29, Ben Dwarshuis 2/23

ISLAMABAD: Defending champions Islamabad United defeated Peshawar Zalmi by a mammoth 102 runs on Monday, driven by an explosive century by right-handed batter Sahibzada Farhan as the two sides faced each other in their Pakistan Super League (PSL) 2025 clash at Rawalpindi. 

United batted first, scoring an impressive 243/5 from their 20 overs. Their innings was led by opener Farhan, who smashed 106 runs from 52 balls, hitting 13 fours and five sixes. Colin Munro contributed with a quickfire 40 from 27 balls while Salman Ali Agha scored a 30-run knock from 15 balls. 

Zalmi bowlers Hussain Talat and Azarri Joseph each grabbed two wickets. 

“Credit goes to Sahibzada Farhan for his hard work behind the scenes,” United skipper Shadab Khan said at the post-match conference. “When you don’t perform, we will judge you as if you haven’t done the hard work. But he did play for Pakistan in and out for some time, he did the right stuff, and eventually it has come out.”

It was yet another disappointing day for Zalmi skipper Babar Azam, who was caught by Holder off a Ben Dwarshuis delivery after scoring only one run. In-form opener Saim Ayub failed to make a dent, falling for six runs while Mitchell Owen made only 10 before he was dismissed by Imad Wasim. 

Only Zalmi middle-order batter Mohamamd Haris impressed, scoring 87 runs from 47 balls but the rest of the batters such as Tom Kohler-Cadmore, Talat and George Linde all fell cheaply to trigger a Zalmi batting collapse. 

Former Karachi Kings captain Wasim was instrumental in Zalmi’s fall, returning figures of 3/26 from his four overs while Khan and Dwarshuis both took two wickets each. Holder and Naseem Shah each took a single wicket as Zalmi were bowled out for 141 in 18.2 overs. 

Farhan was awarded the Player of the Match award.


Police recover bodies of 2 kidnapped constables in northwest Pakistan amid surging militancy

Updated 14 April 2025
Follow

Police recover bodies of 2 kidnapped constables in northwest Pakistan amid surging militancy

  • Constables Hameed Shah, Ashraf Dotani were kidnapped by unidentified gunmen from their homes in South Waziristan district, say police
  • In separate incident, seven laborers injured in bomb blast targeting under-construction building of Rescue 1122 in northwestern Tank district

PESHAWAR: The bodies of two kidnapped constables were recovered from a deserted area in northwestern Pakistan on Monday, a police spokesperson said, as the country struggles to contain surging militancy in Khyber Pakhtunkhwa (KP) province. 

Constables Hameed Shah and Ashraf Dotani were kidnapped by unidentified gunmen in Wana town in South Waziristan district on Saturday, police spokesperson Habib Islam said. Members of the Dotani tribe chased the gunmen, trading fire with them. Three militants were killed while two, including a local tribesman and a girl, were injured during the clash. 

“The martyred personnel were kidnapped two days ago from their homes in Tui Khula, a locality on the outskirts of Wana, the main town in the district,” Islam told Arab News.

No group has so far claimed responsibility for the incident, but suspicion is likely to fall on the outlawed Tehreek-e-Taliban Pakistan (TTP) outfit or the Pakistani Taliban. The TTP has carried out some of the deadliest attacks against Pakistani law enforcers since 2007. 

The banned unit has increased its attacks on Pakistani law enforcers since November 2022, when a fragile truce between the state and the TTP broke down. Pakistan blames neighboring Afghanistan for providing sanctuary to TTP militants, a charge Kabul vehemently denies. 

In a separate incident, seven laborers were injured in the northwestern Tank district on Monday when a bomb blast targeted the under construction building of a prominent rescue emergency service, police said. 

Tank police spokesperson Younas Khan said the explosion struck an under-construction Rescue 1122 building located in Wazirabad area in Tank.

Rescue 1122 teams responded quickly, shifting the injured to the District Headquarters (DHQ) Hospital for medical treatment, Khan said. Following the incident, a large contingent of police and security forces cordoned off the area and launched a search operation to trace those responsible for the blast, he said.


Pakistan parliament adopts unanimous resolution against Israel’s ‘heinous wave of atrocities’ in Gaza

Updated 14 April 2025
Follow

Pakistan parliament adopts unanimous resolution against Israel’s ‘heinous wave of atrocities’ in Gaza

  • Law Minister Azam Nazeer Tarar presents resolution seeking immediate Gaza ceasefire, resumption of aid to Palestinians
  • Gaza’s health ministry says at least 1,574 Palestinians have been killed since Mar. 18 when Israel resumed military attacks

ISLAMABAD: Pakistan’s National Assembly on Monday adopted a unanimous resolution condemning Israel’s “heinous wave of atrocities” in Gaza, expressing solidarity with Palestinian citizens and demanding an immediate ceasefire in the territory, state-run media reported. 
Gaza’s health ministry said on Sunday that at least 1,574 Palestinians have been killed since Mar. 18 when a shaky ceasefire between Hamas and Israel broke down, taking the overall death toll since the war began in October 2023 to 50,944.
The resolution was moved by Pakistan’s Law Minister Azam Nazeer Tarar during a session of the lower house of parliament. The resolution noted that the latest Israeli offensive has resulted in the killing of over 1500 Palestinians, rebuking the destruction of complete civil infrastructure in Gaza including houses, hospitals, schools and places of worship. 
“The National Assembly on Monday adopted a unanimous resolution, once again strongly condemning the ongoing heinous wave of atrocities by the Zionist Israeli regime in Gaza,” state broadcaster Radio Pakistan reported. 
The National Assembly expressed “unwavering solidarity” with the people of Palestine, reaffirming their inalienable right to self-determination and an independent motherland.
The resolution also expressed dismay at the international community’s failure to halt Israeli aggression, calling urgently for an immediate, permanent and comprehensive ceasefire. It also demanded uninterrupted and sustainable humanitarian assistance to besieged and beleaguered Palestinians in the territory.
Pakistan’s Information Minister Attaullah Tarar said the entire Pakistani nation stands united when it comes to Palestine. He pointed out that Pakistan has a unique distinction on its passport, which does not allow its holders to travel to Israel. 
Pakistan, which does not have diplomatic relations with Israel, has frequently criticized the Jewish state for its military operations in Gaza. Islamabad has also called for the resumption of humanitarian aid to the Palestinian territory and the need for a revival of negotiations leading to a two-state solution.
Islamabad consistently calls for an independent Palestinian state along the pre-1967 borders and with East Jerusalem as its capital.


Pakistan to vaccinate over 45 million children against polio in nationwide campaign in April

Updated 14 April 2025
Follow

Pakistan to vaccinate over 45 million children against polio in nationwide campaign in April

  • Over 400,000 volunteers to participate in nationwide polio drive from Apr. 21-27, says health minister
  • Stresses cooperation among federal, provincial governments and global partners to eliminate polio

ISLAMABAD: Pakistan will vaccinate over 45 million children against poliovirus in April in its second nationwide campaign against the disease this year, Health Minister Syed Mustafa Kamal said on Monday, as Islamabad intensifies efforts to rid the country of the infection. 

Polio is a paralyzing disease with no cure and multiple doses of the oral polio vaccine — along with completing the routine immunization schedule for children under five — are crucial to building immunity against the virus. 

Pakistan, which has reported six polio cases so far in 2025, has planned three major vaccination campaigns in the first half of the year, with additional rounds scheduled for April and May.

“The second national polio campaign of the year is scheduled from Apr. 21 to 27 nationwide,” Kamal said while chairing a high-level meeting on polio eradication, which was attended by provincial health ministers.

“Over 400,000 trained polio workers will participate, aiming to administer polio vaccination drops to over 45 million children.”

Kamal lamented that Karachi’s sewage samples continued to test positive for poliovirus. The minister directed authorities to formulate a strategy for the nationwide polio campaign, highlighting that a “coordinated approach” was essential to completely eradicate the disease.

The minister stressed the importance of cooperation among federal and provincial governments, as well as international partners, to ensure the success of polio eradication efforts. 

Pakistan’s polio program, launched in 1994, has faced persistent challenges including vaccine misinformation and resistance from some religious hard-liners who claim immunization is a foreign conspiracy to sterilize Muslim children or a guise for Western espionage. Militant groups have also repeatedly targeted and killed polio vaccination workers.

In 2024, Pakistan reported an alarming 74 polio cases. Along with Afghanistan, it remains one of the only two countries where polio is still endemic.


Pakistan, Morocco kick off joint counterterror exercise to promote military ties

Updated 14 April 2025
Follow

Pakistan, Morocco kick off joint counterterror exercise to promote military ties

  • Exercise’s third edition aimed at refining professional skills of both armies, says Pakistan military’s media wing
  • Pakistan enjoys cordial relations and cooperation in trade, defense and other sectors with various Arab nations

ISLAMABAD: The armies of Pakistan and Morocco kicked off the third edition of their joint bilateral military exercise on Monday, the Pakistani military’s media wing said, stressing that the drill was aimed at enhancing professional skills of their soldiers and promoting defense relations between the two countries. 

Pakistan enjoys cordial ties and strong defense relations with Arab countries, which often causes them both to engage in frequent training exercises, defense production collaborations and counter-terrorism intelligence sharing. 

“Opening Ceremony of 3rd Pak-Morocco Joint Bilateral Military Exercise-2025 was held between the Armies of Pakistan and Morocco in counter terrorism domain at Special Operations School, Cherat,” the Inter-Services Public Relations, (ISPR) the army’s media wing, said in a statement. 

Cherat is a hill station located northwestern Pakistan’s Nowshera district. 

Pakistan’s Special Services Group and the Moroccan Army’s special forces are taking part in the exercise, the statement confirmed. 

“The exercise is aimed at refining professional skills through joint training and harnessing historic military to military relations among the friendly countries,” the ISPR said. 

The bilateral relationship between Pakistan and Morocco is marked by cordial ties and historic fraternity, according to Pakistan’s foreign office. 

In November last year, Moroccan Air Force Inspector Major General Mohammed Gadih expressed his interest in collaborating with the Pakistan Air Force (PAF) in the aerospace sector. 

During his visit, the Pakistani air chief reaffirmed his commitment to enhancing military ties with Morocco through joint training programs, including those at the basic and tactical levels, for Moroccan Air Force personnel.