In January 2021, Pakistan’s current account deficit fell to $229 million from $652 million compared to the previous month and $512 million compared to the previous year. This shows an improvement of 65% MoM and 55% YoY. The major cause of this is the recovery in exports and strong remittances.
During the first seven months of FY21, the current account still showed a surplus of $912 million compared to $2,544 million in a similar period from last year.
During January, the YoY improvement is nearly 2% YoY and 19% YoY increase in exports of goods and remittances to $2.6 billion and $2.274 billion, respectively. Simultaneously, the MoM improvement witnessed a dip of 12% due to a decline in imports of goods to $4.437 billion from $5 billion in the previous month.
It is said that the total exports of goods and services witnessed a dip by 9% MoM during Jan’21 to $2.615 billion compared to $2.880 billion in the previous month. On the other hand, exports witnessed an increase of 2% in Jan’21 YoY, where it was $ 2.563 billion in Jan’20.
Furthermore, while the imports of goods and services during Jan’21 dipped by 12% MoM to $ 5.085 billion compared to $5.78 billion reported in Dec’20. On a yearly basis, the imports of goods and services jumped by 10% in Jan’21 from $4.614 billion in the same month last year.
The result of this is a trade deficit of $2.47 billion in Jan’21, up by 20% YoY while down by 15% MoM.
In the first seven months of FY21, total exports were $17.26 billion, dipped by 3% YoY, whereas total imports increased by 3% YoY to $32.12 billion, resulting in a trade deficit of US$14.857 billion.
News Desk is the author at Research Snipers covering all Pakistan news including Business, Social, Entertainment, Economy, Pak News, World News, and More. News Desk is managed by a senior editor at Research Snipers.