Pakistan’s Current Account posted a deficit of $632 million during the month of May-2021 compared with surplus of $329million during May-2020. This remains the highest monthly deficit since December-2019 as economy regains its track and trade activities pick up momentum.
The primary reason behind the rise in deficit was 73%YoY increase in imports ($2,344mn). Though total exports and remittances have also increased by 62%YoY ($1,004mn) and 34% YoY ($626mn) respectively.
On Cummulative basis, Paksitan’s Current Account Surplus declined to $153mn compared to deficit of $4.32bn during same period of last fiscal year.
Pakistan’s external account position remain precarious as revival of economy is taking toll. Pakistan’s imports are fast rising as compared to last year, fast outpacing the exports which witness muted growth.
The only hope for Pakistan to balance its Current account position is hinged upon Foreign Remittances which are likely to cross $29billion in Fiscal Year 2021.
Going onwards, with significant increase in imports expected and exports likely to lose momentum, Current Account Deficit will aggravate.
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