Current account deficit balloons to $3.4 billion in the 1st quarter: SBP

KARACHI: The current account deficit – the gap between foreign payments and inflows – has ballooned to $3.4 billion during the first quarter (July-September) of the current fiscal year 2021-22 owing to significant widening in trade deficit.
According to data released by the State Bank of Pakistan (SBP), the current account deficit widened to $3.4 billion during the first quarter of the current fiscal year as compared with a surplus of $865 million in the corresponding period of the last fiscal year.
The country’s trade deficit has swollen by a massive 102.10 percent to $11.75 billion during the quarter under review as compared to the deficit of $5.81 billion in the corresponding quarter of the last fiscal year. The import bill registered a sharp growth of 66.11 percent to $18.75 billion during July-September of the current fiscal year as compared with $11.29 billion in the same period of the last fiscal year.
Meanwhile, the exports have also exhibited a growth of 28 percent to $6.99 billion during the quarter under review as compared with $5.47 billion in the same period of the last fiscal year. Overseas Pakistanis have remitted $8.034 billion during the first quarter of the fiscal year 2021-22. The home remittances during the first quarter registered a rise of 12.5 percent when compared to $7.143 billion in the corresponding period of the last fiscal year.
The current account deficit narrowed down to $1.47 billion in September 2021. The current account balance recorded a surplus of $27 million in the same period of last, the State Bank of Pakistan (SBP) said.
In September, the deficit amounted to $1.11 billion. It was 24.48% lower than the deficit recorded in the previous month of August. The data showed during 1QFY22, the country’s deficit reached $3.4 billion compared with a surplus of $865 million during the same period last year.
The central bank wrote on Twitter: “A strong rebound in economic activity and higher [international] commodity prices kept the [current account deficit] at an elevated level of $3.4 billion in Q1-FY22.” – TLTP