Pakistan’s current account deficit narrowed down to $1.47 billion in September 2021.
According to the State Bank of Pakistan (SBP), the current account balance recorded a surplus of $27 million in the same period of last.
“A strong rebound in economic activity and higher [international] commodity prices kept the [current account deficit] at an elevated level of $3.4 billion in Q1-FY22,” the central bank said on Twitter.
The current account deficit narrowed to $1.11 bn in Sep 21 from $1.47 bn in Aug 21. A strong rebound in economic activity and higher int’l commodity prices kept the CAD at an elevated level of $3.4 bn in Q1-FY22.https://t.co/Od8ikVvpBF pic.twitter.com/AYvOAnhfUh
— SBP (@StateBank_Pak) October 19, 2021
In September, the deficit amounted to $1.11 billion. It was 24.48 per cent lower than the deficit recorded in the previous month of August.
The data showed during 1QFY22, the country’s deficit reached $3.4 billion compared with a surplus of $865 million during the same period last year.
According to Arif Habib Limited, the primary reason behind the deficit was a 53pc year-on-year (YoY) increase in total imports to $6.7 billion.
Meanwhile, month-on-month (MoM) exports have exhibited an increase. Total exports and remittances also increased by 31pc and 17pc YoY, respectively.
During September, the balance of trade in goods recorded a deficit of 5.9pc YoY while for the services the deficit narrowed by 65.2pc on a YoY basis.
Pakistan exported goods worth $2.64 billion compared to the imports worth $6.07 billion, while the value of exports of services clocked in at $551 million compared to $668 million in September last year.