Pakistan posted the current account deficit (CAD) of $9.09 billion in the first half of the ongoing fiscal year as opposed to the $1.25 billion surplus recorded in the same period last year, reflecting the robust increase in imports, the central bank data showed on Saturday.
In Dec ’21, CAD was broadly unchanged at $1.93bn from $1.89bn in Nov ’21. While on a yearly basis, the current account balance rang alarm bells as its deficit was two-fold high as a year earlier.
The trade deficit in goods narrowed by around 3 percent MoM to $3.6bn in Dec ’21 as exports jumped by nearly 8 percent MoM while imports saw a marginal increase of 1.35 percent MoM. However, year on year, the trade deficit in goods widened by 31 percent in December.
Meanwhile, the trade balance in services, while still negative, surged by 19.2 percent MoM to $342 million courtesy a 19 percent MoM growth in imports though the exports increased by 18.5 percent MoM.
On year-on-year, the trade deficit in services went up by 2.4 percent YoY in Dec ’21.
Workers’ remittances improved slightly by 2.44 percent MoM to $2.52 billion from $2.46 billion in Nov ’21.
On a cumulative basis during July-Dec FY22, remittances by overseas Pakistani moved up by 11 percent YoY to $15.8 billion from $14.2 billion recorded in July-Dec FY21.