Inflow of funds increases, current account deficit narrows

[Pk_Thunder]

Inflow of funds increases, current account deficit narrows​

Updated at: 1036 PST, Thursday, March 19, 2009
Inflow of funds increases, current account deficit narrows KARACHI: Pakistan’s current account deficit narrowed by 13.7 per cent between July and February 2008-09 over the same period of previous year after improvement in trade balance and overseas Pakistanis sent home more remittances.

In the first eight months of the current fiscal year, the deficit in current account balance shrank to $7.45 billion from $8.64bn in the same period of 2007-08, showed the State Bank of Pakistan’s data released on Wednesday.

Trade deficit came down to $8.8bn from $9.2bn as exports slightly improved while falling international commodity prices slowed import growth, it revealed.

Exports between July and Feb 2008-09 totalled $13bn against $12.4bn recorded in the corresponding period of previous year. In the same period, imports were $21.8bn against previous $21.7bn.

Even though imports are a little higher, their growth has been substantially controlled when compared with the first July-Sept quarter of 2008-09. Trade deficit almost doubled to $4.1bn in the first quarter compared to previous year’s $2.3bn.

Another factor which greatly contributed to improving the current account deficit was workers’ remittances, which went up to $4.9bn from $4.1bn in eight months.

The SBP also released foreign investment figures, which showed that investment from abroad decreased by 34.2 per cent in July-Feb 2008-09. Foreign investment fell to $1.8 billion from previous year’s $2.8bn after a massive outflow of portfolio investment.

Approximately $902 million were pulled out by portfolio investors, something which overshadowed the resilient foreign direct investment of $2.79bn.

 

[s90]

very good news..current account deficit should get down more

 

[Omar1984]

Good news. We need to hear more news like this so we wont rely on American aid that will only lead to more spilling of Pakistani blood.

Pakistan has been given everything, we need to use all our resources and work together to improve our economy.

 

[sohailbutt]

POLITICAL STABILITY is the key to success for Pakistan.

without this there will be no fdi flowing in to the Country, so lets hope that political stability prevails, and brings good days back to Pakistan.