Islamabad: The current account deficit of Pakistan took a 39% plunge and fell to $625 million during the month of April compared to $1015 million in March of the current FY, the State Bank of Pakistan notified on Thursday.
Current Account Deficit shrunk to $623mn, in Apr 22; only two-thirds of Mar22 deficit of $1015mn. A rise in workers’ remittances (by $315mn) & a fall in imports (by $246mn) explain this reduction. Cumulatively, CAD reached $13,779mn during Jul-Apr FY22.https://t.co/Od8ikVdOd5 pic.twitter.com/smhwJlyTZu
— SBP (@StateBank_Pak) May 19, 2022
“Current Account Deficit shrunk to $623mn, in Apr 22; only two-thirds of Mar22 deficit of $1015mn. A rise in workers’ remittances (by $315mn) & a fall in imports (by $246mn) explain this reduction,” the central bank stated.
The statement further said that the fall in CAD is due to a rise in workers’ remittances worth $315 million and a fall in imports by $246 million.
Pakistan received an all-time $3 billion in remittances in April, which played a substantial role in bringing down the CAD.
Read: Remittances cross $3 billion mark in April
However, it is also pertinent to mention that the country’s current account deficit rose to $13.78 billion in the first ten months (July-April) of this fiscal year (FY22) compared to $ 543 million in the same period of last fiscal year (FY21).
