Current account deficit in the eleven months of the current fiscal year crossed the government’s full year target of 8.4 billion dollars because of diminishing export performance, lesser arrival of remittances and substantial jump in imports.
According to the data released by the State Bank of Pakistan, the current account deficit in July to May period of this fiscal year reached to whopping 8.9 billion dollars against the government’s estimates of 8.4 billion dollars.
Even in the preceding month or May the current account deficit reached 1.6 billion dollars which has been a record too because if we quickly look into the numbers last time the current account deficit on monthly basis reached 2.4 billion dollars in October 2008. After that the current account deficit reached 1.6 billion dollars in May 2017.
The major reason behind this huge deficit has been the deficit arising from exports and imports, goods and service, which amounts to 25 billion dollars while the remittance accounts for 17 billion dollars.
According to an analyst at the end of the current fiscal year the deficit might witness an addition of one billion dollar, reaching to nearly 10 billion dollars which would also be record for the country.