Pakistan current account records $200 million deficit due high import pressure

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Pakistan current account records $200 million deficit due high import pressure

ISLAMABAD- The Current Account recorded a deficit of $200 million in the month of April due to a high import bill in the outgoing month, according to data reported by the State Bank of Pakistan (SBP).

The current account deficit of April 2021 is 61 percent lower than it was in April 2020. However, the current account had maintained a surplus position that stood at $800 million during the first 10 months of the current financial year 2020-21, a significant turnaround from the deficit of $4.7 billion during the same period last year.

With the economy rebounding strongly in FY21, imports are picking up but are being offset by unprecedented growth in remittances and recovery in exports. With the CAB contained and the foreign exchange reserves at a four-year high, the economic revival is on sound and sustainable footing.

A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities, told Propakistani,

Good numbers continue this month as well. The next few months are sorted. Don’t see SBP needs to change the stance yet

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The trade deficit of goods is increasing every month after being at $21.3 billion during July-April as compared to $17.5 billion recorded in the corresponding period last year.

On the other hand, the trade deficit of the services had reduced to $1.4 billion during July-April from $3.02 billion of the last year’s corresponding period. Hence, the overall deficit stood at $22.7 billion, showing an increase of 10 percent in the deficit values.

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