KARACHI: Pakistan’s current account deficit (CAD) hit record $13.17 billion during first nine months (July – March) 2021/2022, according to balance of payment (BoP) data released on Saturday.
The current account deficit for July – March 2021/2022 widened to $13.169 billion as compared with the deficit of $275 million in the corresponding months of the last fiscal year, the State Bank of Pakistan (SBP) said.
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The massive widening of current account deficit may be attributed to sharp increase in imports and repayment of external debt.
The trade deficit widened by 71 per cent to $35.52 billion during first nine months of the current fiscal year as compared with $20.8 billion in the corresponding period of the last fiscal year, according to Pakistan Bureau of Statistics (PBS).
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Import bill of the country recorded an increase of 49 per cent to $58.87 billion during July – March 2021/2022 as compared with $39.49 billion in the same period of the last fiscal year. On the other hand exports of the country also grew by 25 per cent to $23.35 billion during the first nine months of the current fiscal year as compared with $18.68 billion in the corresponding period of the last fiscal year.
The inflows of workers remittances increased to $22.95 billion during July – March 2021/2022 as compared with $21.43 billion in the corresponding period of the last fiscal year.
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The current account deficit for the month of March 2022 widened to $1.028 billion as compared with the deficit of $369 million in the last year and deficit of $519 million in February 2022.
Pakistan’s current account deficit had reached dollar $4.45 billion in fiscal year 2019/2020. However the deficit shrank to $2.82 billion in fiscal year 2020/2021.
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