 In the first eight months (Jul-Feb) of the current fiscal year, the

country’s deficit cumulatively decreased by 68% to $3.9bn compared to

a deficit of $12.1bn during the same period last year.

 The decline in the CAD was due to a fall in imports while no higher exports
or inflows were noted. Though the balance of payment reflected a healthy
sign for improvement in the external front of the country’s economy, the
government is unable to meet even this decreasing CAD due to extremely
poor foreign exchange reserves.a
 Imports of goods during the first eight months of FY23 stood at $37.88bn,
while exports during the same period were $18.639bn. The import of
services during this period was $5.118lbn against the export of services at
$4.778bn. Despite a massive decline in the CAD, the government is unable
to meet the deficit due to large trade deficit.

 Imports of goods during the first eight months of FY23 fell by almost $10bn
and exports by around $2bn. The poor exports with much higher imports did
not allow the country to find a balance on its external front. The balance of
trade in goods and services during the first eight months of FY23 was in
deficit with $19bn compared to $29.8bn last year.