Pakistan’s current account deficit rises to $17.4b in FY2022
- By Web Desk -
- Aug 02, 2022
ISLAMABAD: Pakistan’s current account deficit (CAD) has swelled to $17.4 billion in the fiscal year of 2021-22, ARY News reported on Tuesday.
According to details, the country recorded a CAD of USD 17.406 billion in FY22 compared to just USD 2.82 billion in FY21.
The massive CAD speaks a lot about the severe problem of the balance of payments. The deficit of over USD 17.4 billion is more troubling in the wake of no inflows as loans while the commercial markets are not ready to accept Pakistan’s bonds due to higher risks.
Read more: Current account deficit hits $1.4bn in May: SBP
It is to be mentioned here that the CAD was a record high in 2018 at $19.2 billion. The record CAD was incurred by PTI after the five-year rule of Pakistan Muslim League-Nawaz.
Finance Minister Miftah Ismail has been hinting at an early deal with the IMF, but with the passage of time, the trust deficit is rising; the currency market reflects the trust deficit by depreciating the local currency on a day-to-day basis.