Amid import curbs, Pakistan’s current account deficit shrinks 90pc to $0.24bn in January

Pakistan’s current account deficit shrank 90.2 per cent to $0.24 billion in January from $2.47bn in the same month last year, data shared by the State Bank of Pakistan (SBP) showed on Monday, as import restrictions continue to persist amid a balance of payments crisis that has brought the country on the verge of default. Compared to December’s $0.29bn, the deficit decreased 16.55pc. Pakistan has a chronic balance of payments problem which has exacerbated in the last year, with the country’s forex reserves declining to critical levels. As of Feb 10, the central bank had only $3.2bn in reserves, enough to cover barely three weeks of imports. To stem dollar outflows, the government has imposed restrictions, allowing imports of only essential food items and medicines until a lifeline bailout is agreed with the International Monetary Fund (IMF), which is seen as essential for the country to stave off default.