AGL 8.30 Decreased By ▼ -0.03 (-0.36%)
ANL 10.95 Increased By ▲ 0.25 (2.34%)
AVN 79.70 Increased By ▲ 1.51 (1.93%)
BOP 5.75 Increased By ▲ 0.18 (3.23%)
CNERGY 5.64 Increased By ▲ 0.26 (4.83%)
EFERT 79.36 Increased By ▲ 0.71 (0.9%)
EPCL 67.48 Decreased By ▼ -0.31 (-0.46%)
FCCL 14.89 Increased By ▲ 0.39 (2.69%)
FFL 6.70 Increased By ▲ 0.10 (1.52%)
FLYNG 7.16 Increased By ▲ 0.13 (1.85%)
GGGL 11.60 Increased By ▲ 0.26 (2.29%)
GGL 17.51 Increased By ▲ 0.27 (1.57%)
GTECH 8.35 Increased By ▲ 0.05 (0.6%)
HUMNL 7.17 Increased By ▲ 0.11 (1.56%)
KEL 3.14 Increased By ▲ 0.06 (1.95%)
LOTCHEM 35.20 Increased By ▲ 2.33 (7.09%)
MLCF 28.35 Increased By ▲ 0.05 (0.18%)
OGDC 87.70 Increased By ▲ 3.15 (3.73%)
PAEL 16.63 Increased By ▲ 0.18 (1.09%)
PIBTL 6.05 Increased By ▲ 0.20 (3.42%)
PRL 19.46 Increased By ▲ 1.34 (7.4%)
SILK 1.14 No Change ▼ 0.00 (0%)
TELE 11.41 Increased By ▲ 0.31 (2.79%)
TPL 9.20 Increased By ▲ 0.20 (2.22%)
TPLP 20.25 Increased By ▲ 0.37 (1.86%)
TREET 27.10 Increased By ▲ 0.48 (1.8%)
TRG 96.20 Increased By ▲ 1.70 (1.8%)
UNITY 20.85 Increased By ▲ 0.48 (2.36%)
WAVES 13.90 Increased By ▲ 0.27 (1.98%)
WTL 1.34 Increased By ▲ 0.03 (2.29%)
BR100 4,275 Increased By 67 (1.59%)
BR30 15,794 Increased By 348.3 (2.26%)
KSE100 42,872 Increased By 628.4 (1.49%)
KSE30 16,219 Increased By 247.6 (1.55%)
Pakistan

Pakistan's current account deficit clocks in at $1.43bn in May 2022

  • Deficit 131% higher on monthly basis as it amounted to $618mn in April 2022
Published June 28, 2022

Pakistan’s current account deficit clocked in at $1.425 billion in May 2022, compared to $640 million recorded in the same period of the previous year, showed data released by the State Bank of Pakistan (SBP) on Tuesday.

Updated figures of the SBP also revealed that the current account deficit stood at $618 million in April 2022. Hence, the current account deficit for May 2022 is 131% higher on a monthly basis.

The central bank said that while overall imports in May fell compared to April, a decline in remittances and exports on account of Eid holidays contributed to this rise.

“Moreover, excluding in kind imports that are fully financed and thus, do not undermine sustainability of the CAD, the deficit was more modest at $1 billion,” the central bank added.

Meanwhile, cumulatively, during the eleven-month period of the ongoing fiscal year (July-May of FY22), the current account deficit stood at $15.2 billion compared to a deficit of only $1.183 billion during the same period of the previous fiscal year (FY21), showed SBP data.

Pakistan's current account deficit clocks in at $1.03bn in March

The current account balance is a key figure for Pakistan's economy. A widening deficit in the current account leads to an outflow of dollars, which puts pressure on the currency that has continued to struggle against the greenback.

In an early morning development, Pakistan received combined economic and financial targets for the seventh and eighth reviews of its IMF bailout programme, said Finance Minister Miftah Ismail.

On Twitter, Miftah said the government had received the lender's Memorandum of Economic and Financial Policies (MEFP) for both reviews, following meetings last week between the two sides.

The government wants to conclude an agreement with the monetary watchdog for the revival of the $6-billion program before approval of the Federal Budget 2022-23. It needs to get the budget approved by June 28.

The IMF programme is widely seen as crucial for Pakistan's economy, which has struggled with high inflation and a widening current account deficit. The deterioration has caused the rupee to hit all-time lows several times during the year, with nearly 15% depreciation this calendar year alone.

Comments

Comments are closed.