Pakistan’s Current Account Deficit (CAD) rose to $1.4 billion in May 2022, according to the data released by the State Bank of Pakistan (SBP) on Tuesday.
“The current account deficit (CAD) rose to $1.4bn in May. While overall imports fell compared to April, a decline in remittances and exports on account of Eid holidays contributed to this rise,” said SBP on Twitter. “Moreover, excluding in kind imports that are fully financed and thus do not undermine sustainability of the CAD, the deficit was more modest at $1bn.”
2/2 Moreover, excluding in kind imports that are fully financed and thus do not undermine sustainability of the CAD, the deficit was more modest at $1bn.— SBP (@StateBank_Pak) June 28, 2022
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It is pertinent to mention that the federal government has taken numerous measures to recover the current account deficit such as imposing an import ban on luxury and non-essential items like mobile phones, automobiles, home appliances, shoes, several food items and more.
The import ban is expected to save the country much needed foreign exchange and recover the current account deficit as well as depreciation of the local currency against the US Dollar (USD to PKR).
Read more: Dollar Rate in Pakistan (Daily Updates).