State Bank of Pakistan (SBP), on Monday, released the data which shows that Pakistan’s current account deficit widened further to $1.91 billion in November 2021, up from $1.76 billion in October 2021.
A high import bill, which stood at over $6.4 billion, and decline in remittances month-on-month contributed to the deficit.
The figure for November brings the total current account deficit to $7.09 billion in the five months of the ongoing fiscal year (July-November), a drastic change of events when compared with the same period of the previous year when Pakistan posted a surplus of $1.88 billion.
The widening current account deficit has put severe pressure on the country’s currency that has shed nearly 15% of its value since May this year, contributing to inflation, and forcing the central bank to aggressively tighten its stance towards interest rates. Inflation reading came in at 11.5% for November, a nearly two-year high.