ameer219
FULL MEMBER
- Joined
- Jan 30, 2010
- Messages
- 977
- Reaction score
- 3
- Country
- Location
July-February current account deficit at $98 million
RECORDER REPORT
KARACHI (March 18, 2011) : The country's current account deficit has narrowed down by 97 percent during first eight month of FY11 primarily driven by massive decline in trade and services deficit and high foreign inflows. The State Bank of Pakistan on Thursday said that current account posted a deficit of $98 million in July-February of FY11 as compared to $3.027 billion in the corresponding period of FY10, depicting a decrease of $2.929 billion.
The detailed analysis show that massive cut in import of services and rising inflows of home remittances helped improve current account balance. Economists said that decline in current account is a positive indication for the country's economy and it would put positive impact on the performance of economy. "We believe that decline in current account deficit would also help keep the exchange rate stable, besides strengthening the foreign exchange reserves," they said.
They said that improving current account situation also indicates stability in the country's economy and hoped that current account deficit for the remaining period of current fiscal year was also likely to decline followed by high foreign inflows and decline in imports.
They recalled that in November 2009, due to rising current account deficit, Pakistan was compelled to rejoin International Monetary Fund and get a loan of $11.3 billion under Stand by Arrangement (SBA) to avoid default on international front. However, the situation is now much better and not only current account has improved but also the country's liquid forex reserves have reached peak level, they said. The State Bank statistics showed that trade, services and income sector presented significant improvement, as overall deficit of these three components declined by 11 percent or $1.23 billion to $9.96 billion in July-February of FY11 as compared to $11.198 billion in same period of last fiscal year.
Services deficit declined by 44 percent to $927 million during the period. With an increase of 34 percent or $968 million, services sector exports surged to 3.795 billion in first eight months of current fiscal year as compared to $2.82 billion in same period of last fiscal year. Service sector imports, however, went up by $250 million to $4.722 billion from $4.472 billion during the period under review.
The country's overall goods imports stood at $22.617 billion and exports at $15.45 billion with a trade deficit of $7.163 billion during first eight months of FY11. Previously it stood at $7.564 billion in the same period of last fiscal year 2010. Similarly, income sector deficit stood at $1.872 billion with $2.318 billion payments and $446 million income during the July-February of current fiscal year.
Business and Economy - July-February current account deficit at $98 million
RECORDER REPORT
KARACHI (March 18, 2011) : The country's current account deficit has narrowed down by 97 percent during first eight month of FY11 primarily driven by massive decline in trade and services deficit and high foreign inflows. The State Bank of Pakistan on Thursday said that current account posted a deficit of $98 million in July-February of FY11 as compared to $3.027 billion in the corresponding period of FY10, depicting a decrease of $2.929 billion.
The detailed analysis show that massive cut in import of services and rising inflows of home remittances helped improve current account balance. Economists said that decline in current account is a positive indication for the country's economy and it would put positive impact on the performance of economy. "We believe that decline in current account deficit would also help keep the exchange rate stable, besides strengthening the foreign exchange reserves," they said.
They said that improving current account situation also indicates stability in the country's economy and hoped that current account deficit for the remaining period of current fiscal year was also likely to decline followed by high foreign inflows and decline in imports.
They recalled that in November 2009, due to rising current account deficit, Pakistan was compelled to rejoin International Monetary Fund and get a loan of $11.3 billion under Stand by Arrangement (SBA) to avoid default on international front. However, the situation is now much better and not only current account has improved but also the country's liquid forex reserves have reached peak level, they said. The State Bank statistics showed that trade, services and income sector presented significant improvement, as overall deficit of these three components declined by 11 percent or $1.23 billion to $9.96 billion in July-February of FY11 as compared to $11.198 billion in same period of last fiscal year.
Services deficit declined by 44 percent to $927 million during the period. With an increase of 34 percent or $968 million, services sector exports surged to 3.795 billion in first eight months of current fiscal year as compared to $2.82 billion in same period of last fiscal year. Service sector imports, however, went up by $250 million to $4.722 billion from $4.472 billion during the period under review.
The country's overall goods imports stood at $22.617 billion and exports at $15.45 billion with a trade deficit of $7.163 billion during first eight months of FY11. Previously it stood at $7.564 billion in the same period of last fiscal year 2010. Similarly, income sector deficit stood at $1.872 billion with $2.318 billion payments and $446 million income during the July-February of current fiscal year.
Business and Economy - July-February current account deficit at $98 million
