ISLAMABAD: Pakistan has spent an amount of $400 million on import of COVID-19 vaccines during the month of September 2021 and overall $1 billion during first quarter (July – September) of fiscal year 2021/2022, said a statement issued by the ministry of finance on Wednesday.
As per State Bank of Pakistan, the current account deficit has reduced to $1.13 billion In September 2021 from $1.47 billion in August 2021.
Overall, the deficit in the first quarter reported at $3.4billion. It is important to note that the surge in import bill is due to combination of few one-off imports, rising global commodities and energy prices, it said.
Therefore, adjustment with vaccines import, the current account deficit for the quarter has reduced to $2.4 billion.
Moreover, the sudden surge in import bill is function of abnormal surge in commodity prices. Energy prices including oil, LNG or coal prices are following upward trend. While, chemicals, steel and food prices are also on rise. “We expect supply bottlenecks of above-stated items will streamline in the months to follow. This will further reduce pressure on import bill,” said the statement.
On Export front, the trend is increasing on month-on-month basis to $2.64 billion in September 2021 or 12.5 per cent. In the first quarter, exports recorded at $7 billion. It is expected that exports will be close to $31 billion and $6-7 billions services exports in June ending 2022.
Similarly, remittances are right on track to mark $32 billion. Remittances and exports of goods and services combined will be in the range of $70 billion in fiscal year 2021/2022.
Lastly, due to better crop outlook, the import of sugar, wheat and cotton will witness massive slowdown during the second half of fiscal year. This will further reduce the import and in-turn, current account deficit.
The risk to above includes further hike in global commodity and energy prices, the finance minister said.
