June 25, 2021 (MLN): Pakistan’s current account balance posted a deficit of $632 million in May 2021, compared to the surplus of $329mn in May 2020.
On a sequential basis, the deficit increased by 3.3x from $188mn in the previous month. This significant incline in the deficit was on account of lower exports due to partial lockdowns and long Eid holidays. While remittance moderated as usual post Eid, SBP said.
Cumulatively during July-May FY21, the Current Account Balance posted a surplus of $153mn, a significant turnaround from the $4.328bn deficit during the same period last year.
In the month of May’21, total imports of goods and services increased by 73% YoY to $5.53bn compared to $3.19bn in May’20. While on monthly basis, total imports remained stable.
Total Exports during the month jumped by 62% YoY to $2.62bn compared with $1.62bn logged in the same month the previous year. Whereas, on a monthly basis, total exports witnessed a decline of 7% in May’21 as it was $2.8bn in the previous month.
This resulted in a trade deficit of $2.9bn in May’21, up by 7% MoM and 85% YoY.
Cumulatively, during July-May FY21, total exports stood at $28.5bn, up by 10% YoY, whereas total imports showed a growth of 12% YoY to $54.15bn, resulting in a trade deficit of $25.6bn, which soared by 16% YoY.
Workers' Remittances by overseas Pakistani registered a growth of 34% YoY while declined by 10% MoM to $2.49bn during May’21, compared to $2.8bn in the previous month and $1.86bn in May’20.
During 11MFY21, the continued healthy growth in inflows took the cumulative figure to a record level of $26.73bn, up by 29% YoY.
