Pakistan continues to post current account deficit in the 2H of the current fiscal year 2021, first one on CY basis. Current Account, in the month of Jan’21, was down by 55% YoY to USD 229mn compared with deficit of USD 512mn during Jan’20. On MoM basis, deficit down by 65%, mainly due to 12% (USD 697 mn) decline in the total imports.

On YoY basis, the primary reason behind the decline in deficit was 2% YoY (USD 52mn) and 19% YoY (USD 367mn) rise in total exports and remittances, respectively. However, total imports also increased by 10% YoY (USD 471mn) during the same period. During 7MFY21, country’s surplus has decreased to USD 912mn compared to a deficit of USD 2,544mn during the same period last year.

Courtesy – AHL Research