Pakistan's current account deficit swells 59pc to $2.28 billion in June

Karachi: Pakistan's current account deficit for June this year has reached $2.28 billion, that is 59 per cent more than $1.43 billion of May.

According to the State Bank of Pakistan (SBP) on Wednesday, cumulatively for fiscal year 2021-22 (FY22), the current account deficit clocked in at $17.4 billion, a massive 517% increase on a yearly basis when compared with the figure of $2.82 billion during FY21.

1/2 As foreshadowed by earlier PBS data, a surge in oil imports saw CAD rise to $2.3bn in Jun despite higher exports & remittances. So far in Jul oil imports are much lower & deficit is expected to resume its moderating trajectory. Visit #EasyData https://t.co/q3LNv3HgLs pic.twitter.com/lvwO9Bo3PJ

— SBP (@StateBank_Pak) July 27, 2022

2/2 3.3mn metric tons of oil was imported in Jun, 33% higher than in May. Together with higher global prices, this more than doubled the oil import bill from $1.4bn to $2.9bn. By contrast, non-oil imports ticked down. See report: https://t.co/Od8ikVvpBF

— SBP (@StateBank_Pak) July 27, 2022

Meanwhile, the SBP said a surge in oil imports saw the current account deficit rise in June despite higher exports and remittances.

"So far in July, oil imports are much lower and deficit is expected to resume its moderating trajectory," it added. 

Details of the balance-of-payments' summary revealed that Pakistan recorded exports of goods at $3.12 billion and another $646 million as services.

However, a massive import bill, which clocked in at $7.04 billion for goods and another $1.37 billion as services, in June was the reason behind the current account deficit.