Daily Times

According to statistics that were made public by the State Bank of Pakistan (SBP) on Wednesday, Pakistan’s current account deficit for the month of June was at $2.28b. This represents a 59pc increase when compared to the figure for May, which stood at $1.43b.

The cumulative current account deficit for the fiscal year 2021-22 (FY22) came in at $17.4b, marking a significant rise on an annual basis of 517pc when compared with the figure of $2.82b for FY21.

Because of the growing deficit’s effects on the rupee’s value, the current account balance is an essential indicator of Pakistan’s economy. The value of the local currency has fallen to all-time lows, and its depreciation over the past nine sessions alone totals more than 11pc.

In the meantime, the SBP reported that the country’s current account deficit increased in June due to a surge in oil imports, despite increases in both exports and remittances.

“So far in July, oil imports are much lower and the deficit is expected to resume its moderating trajectory,” it added.

“As foreshadowed by earlier PBS data, a surge in oil imports saw CAD rise to $2.3b in Jun despite higher exports & remittances. So far in Jul oil imports are much lower & deficit is expected to resume its moderating trajectory,” SBP tweeted.

The breakdown of Pakistan’s balance of payments showed that the country made $3.12b in revenue from the sale of commodities and an additional $646m from the provision of services. Nevertheless, the current account deficit was caused by a high import bill in June that totalled $7.04b for goods and an additional $1.37b for services. Both of these figures are included in the total.