Current account deficit crosses $13 billion mark

KARACHI: Pakistan’s current account balance crossed $13 billion during the first nine months (July-March) 2021/22, owing to a huge outflow of dollars in the shape of import payments and external debt repayments.

According to the balance of payments data released by the State Bank of Pakistan (SBP) on Saturday, the current account deficit for July-March 2021/22 ballooned to $13.169 billion a, compared with the deficit of $275 million in the corresponding months of the last fiscal year۔

The deficit in trade in goods and services widened to $33.27 billion during the period under review, compared with the deficit of $21.29 billion in the corresponding period of the last fiscal year.

The balance of primary income posted a deficit of $3.9 billion during the first nine months of the current fiscal year, compared with $3.32 billion in the corresponding period of the last fiscal year.

The inflows of workers remittances increased to $22.95 billion during July-March 2021/22, compared with $21.43 billion in the corresponding period of the last fiscal year.

The current account deficit for March 2022 widened to $1.028 billion against the deficit of $369 million last year and a deficit of $519 million in February 2022۔

Pakistan’s current account deficit had reached $4.45 billion in the fiscal year 2019/20. However, the deficit shrank to $2.82 billion in the fiscal year 2020/21.