Pakistan's current account deficit swells to $1.5bn in Aug

KARACHI: Pakistan’s current account deficit (CAD) widened to $1.5 billion in August 2021 from $0.8 billion in July, data released by the State Bank of Pakistan (SBP) showed on Friday.

“The recent rise in CAD reflects both the strong domestic recovery and higher int’l commodity prices,” the central bank said in a statement on its official Twitter handle.

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In the first two months of the current fiscal year (2021-22), the current account deficit clocked in at $2.29bn when compared to the surplus of $838 million a year ago.

The current account deficit (CAD) rose to $1.5bn in Aug21 from $0.8bn the previous month, while SBP’s foreign reserves rose to an all-time high of $20 bn. The recent rise in CAD reflects both the strong domestic recovery and higher int’l commodity prices. https://t.co/Od8ikVvpBF pic.twitter.com/O4H8kJHo2l

— SBP (@StateBank_Pak) September 17, 2021

On September 6, SBP had said the country’s trade deficit widened to a whopping $7.49 billion in the first two months of the current fiscal year (FY2021-22).

Exports increased 27.59 per cent to $4.57bn during July-August from $3.58bn during the corresponding period of last year.

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Imports grew by 72.59pc to $12.6bn during the first two months of the ongoing financial year from $6.99bn recorded during last year’s same period. Exports fell 4.53pc to $2.23bn in August 2021 from $2.34bn in July 2021.

However, imports increased by 15.39pc to $6.46bn in August 2021 from $5.60bn recorded last month.