Compares Pakistan's monthly current account balance (money flowing in vs out internationally) with the level of foreign exchange reserves it leaves behind.
Compares Pakistan's monthly current account balance (money flowing in vs out internationally) with the level of foreign exchange reserves it leaves behind.
▸Current Account rose 128.0% over the selected period — from -1.64B USD to 0.46B USD.
▸Reserves fell 1.2% over the selected period — from 17.49B USD to 17.27B USD.
▸Over this period, Current Account and Reserves showed a moderate relationship, moving in opposite directions (correlation coefficient: -0.31).
Sources: SBP EasyData
A persistent current account deficit drains reserves over time unless offset by financial inflows (loans, FDI, remittances) — this comparison shows how directly the two have moved together historically.
Why would reserves rise even during a current account deficit?
Reserves reflect ALL foreign currency flows, not just the current account — external borrowing, IMF disbursements, and bilateral deposits can offset a current account deficit and keep reserves stable or rising.
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