Due to the decline in workers’ remittances from overseas Pakistanis the current account deficit of Pakistan jumped up to $632 million in May 2021.
The deficit in May this year was much bigger compared to April when it was $188m only lower than the deficit of $652m in December.
In May 2020 the country has posted a net surplus of $329m, the SBP data showed.
The Central bank on twitter said that the current account deficit rose to $632 million in May from $188 million in April as exports fell due to partial lockdowns (imposed during the third wave of Covid-19) and long Eid holidays, and remittances moderated as usual post-Eid,” said the central bank on Twitter.
The lofty deficit may trigger depreciation of the rupee against the US dollar and erode the country’s foreign currency reserves.
