Pakistan’s current account deficit for June stood at $2.28 billion, revealed data released by the State Bank of Pakistan (SBP) on Wednesday, up 59% compared with the figure in May when it stood at $1.43 billion.

Cumulatively for fiscal year 2021-22 (FY22), the current account deficit clocked in at $17.4 billion, a massive 517% increase on a yearly basis when compared with the figure of $2.82 billion during FY21.

The current account balance is a key figure for Pakistan’s economy as a widening deficit puts pressure on the rupee. The local currency has hit record lows and depreciated over 11% in the last nine sessions alone amid depleting foreign exchange reserves that have raised concerns over the balance-of-payments’ situation.

Meanwhile, the SBP said that a surge in oil imports saw the current account deficit rise in June despite higher exports and remittances.

“So far in July, oil imports are much lower and deficit is expected to resume its moderating trajectory,” it added.

Details of the balance-of-payments’ summary revealed that Pakistan recorded exports of goods at $3.12 billion and another $646 million as services. However, a massive import bill, which clocked in at $7.04 billion for goods and another $1.37 billion as services, in June was the reason behind the current account deficit.