Pakistan’s aim for the current account deficit (CAD) in the next fiscal year is $4.55 billion, as determined by the International Monetary Fund (IMF).
According to the lender, in FY2024–2025, present CAD levels might rise by $1.544 billion.
According to reports, the IMF projects the deficit to be $3.01 billion by the end of June in FY24, $2.64 billion less than the $5.65 billion objective that was established.
There was a $2.235 billion current account deficit in FY23. The former prime minister Imran Khan’s fully elected administration left a $17.48 billion deficit in its wake. Tight import regulations and a brief central bank embargo on letters of credit helped to drastically lower CAD levels in the years that followed.
However, as a result of businesses being unable to acquire the raw materials needed to sustain the requisite production levels, exports dropped and negatively impacted local industry, resulting in widespread unemployment. Since then, things have gotten better, but the IMF’s most recent prediction of further increases in the current account deficit might make matters worse.
