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Pakistan s current account deficit reduces in Sept

ISLAMABAD: 21, OCTOBER, 2021: The Ministry of Finance yesterday said that the current account deficit- the gap between foreign payments and inflows- reduced to USD 1.13 billion in September from USD 1.47 billion in the month of August.
According to the press release issued by Ministry Finance, as per SBP, "The current account deficit narrowed to $1.11 bn in Sep 21 from $1.47 bn in Aug 21. A strong rebound in economic activity and higher int'l commodity prices kept the CAD at an elevated level of $3.4 bn in Q1-FY22."
The data showed during 1QFY22, the country’s deficit reached $3.4 billion compared with a surplus of $865 million during the same period last year.
It is to be noted that, the increase in import bill is due to combination of few one-off imports, rising global commodities and energy prices.
Approximately, USD 400 million were spent on vaccines just in the month of September 2021 and overall one billion dollars during the last quarter. Therefore, adjustment with vaccines import, the current account deficit for the quarter has reduced to USD 2.4 billion.
Moreover, the sudden rise in import bill is function of abnormal surge in commodity prices.
Pakistan exported goods worth $2.64 billion compared to the imports worth $6.07 billion, while the value of exports of services clocked in at $551 million compared to $668 million in September last year. (04)

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