April 23, 2022 (MLN): Despite all-time high monthly exports of $3.7 billion, Pakistan's current account deficit (CAD) increased sharply by 98% to $1 billion in March 2022 from $519 million in February 2022, largely due to 17% YoY increase in total imports to $7.2bn, the central bank said showed today.
On yearly basis, the current account deficit widened by 2.8x YoY as it stood at $369 million in March 2021.
However, SBP said that despite high global commodity prices, the turnaround in the current account continues, as the deficit of $1bn in Mar, is $500mn lower than the average during FY22. Moreover, the non-oil balance remained in surplus for the 2nd consecutive month.
During the month of March, total exports were at all-time highs, rising by 18% YoY and 9% MoM to $3.7bn compared to March 2021. Total Imports during the month rose by 17% YoY and 20% MoM to $7.2bn.
Going by the data, the trade deficit in goods went up by around 41% MoM and 14% YoY to $3.17bn in March 2022 as exports of goods increased by 6% MoM and 17% YoY to $3bn, while imports of goods saw an increase of 21% MoM and 16% YoY to $6.2bn.
Meanwhile, the trade balance in services, while still negative, dropped by 9% MoM to $264mn courtesy of a slower 13% MoM increase in imports of services compared 25% MoM increase in exports. On yearly basis, the trade deficit in services swelled by 40% YoY in March’22 mainly due to 25% YoY growth in services imports while exports also grew by 20% YoY.
Cumulatively, during 9MFY22, the country recorded CAD of $13.17bn as opposed to $275mn recorded in the same period last year, reflecting a robust increase in imports.
The export of goods and services during July-March FY22 were $28.9bn, marking an increase of 25% YoY. The imports of goods and services increased by 40% to $62.1bn in 9MFY22 against the same period of last year.
Workers' remittances increased by 28% MoM to $2.8bn from $2.19bn in March 2022. On yearly basis, remittances inched up slightly by 3% YoY.
During July-March FY22, remittances by overseas Pakistani moved up by 7% YoY to $22.95bn from $21.4bn recorded in July-March FY21.
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