Pakistan’s current account deficit (CAD) widened to $2.3 billion in June 2022, up by 59% as compared with the figure in May when it stood at $1.43 billion, data released by the State Bank of Pakistan (SBP) showed on Wednesday.

Cumulatively for the fiscal year 2021-22, the current account deficit clocked in at $17.4 billion on a yearly basis when compared with the figure of $2.82 billion during FY21.

The data showed that the main reason for the widening current account deficit was the surging import bill.

“As foreshadowed by earlier PBS data, a surge in oil imports saw CAD rise to $2.3bn in Jun despite higher exports & remittances. So far in Jul oil imports are much lower & deficit is expected to resume its moderating trajectory,” the central bank said in a statement.

The report noted that 3.3mn metric tons of oil was imported in June, 33% higher than in May.

“Together with higher global prices, this more than doubled the oil import bill from $1.4bn to $2.9bn. By contrast, non-oil imports ticked down.”