Baby Leone
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KARACHI: The countrys current account position was in $258 million surplus during July to October of fiscal year 2012-13 due to record remittances inflows, modest growth in exports earning and reserves of Coalition Support Fund (CSF), State Bank of Pakistan reported on Monday.
The situation of current account was recorded extremely challenging in July to October of fiscal year 2011-12 with a deficit of $1.65 billion.
The countrys current account position turned positive in the current financial year after it received the much-awaited amount of $1.2 million from US against its efforts for war against terrorism.
The month of October proved to be good for the country in terms of its macro economy as it witnessed growth in exports, remittances and foreign portfolio investment. However the current account posted deficit of $177 million in October but it turned surplus after the country received $1.2 million CSF from the US.
The remittances landed in the previous months recorded a high level of monthly inflows of $1.365 billion. This was recorded due to handsome inflows of foreign exchange sent by overseas Pakistanis from different countries including KSA, UAE, GCC countries, USA and UK.
The exports earnings also supported the macroeconomic indicator of current account along with trade deficit. It was up modestly by 5.0 percent to reach $8.2 billion in four months of the current financial year. On the other hand, imports eased to $14.643 billion from $14.723 billion a year ago in the period under review.
Analysts said the situation of the current account would remain quite stable for coming months, which will have positive impacts on the economy and value of the currency against the dollar.
Arif Habib Securities Vice President and Head of Research Khurram Schahzad said the current account is likely to stabilise in the months to come if the multiple microeconomic indicators continue to show positive developments.
He said the stability in the positive balance of payment situation will also help contain the value of rupee against the dollar.
Topline Research economic analyst Nouman Ahmed said that continuity of surplus current account lies on the trade balance situation of the country. If the petroleum products maintain their current level or go downward, the trade situation will reflect the balance of payment accordingly.
Comparison :
July to October FY 2011-12
$1.65bn deficit
July to October FY 2012-13
$258m surplus
Daily Times - Leading News Resource of Pakistan
The situation of current account was recorded extremely challenging in July to October of fiscal year 2011-12 with a deficit of $1.65 billion.
The countrys current account position turned positive in the current financial year after it received the much-awaited amount of $1.2 million from US against its efforts for war against terrorism.
The month of October proved to be good for the country in terms of its macro economy as it witnessed growth in exports, remittances and foreign portfolio investment. However the current account posted deficit of $177 million in October but it turned surplus after the country received $1.2 million CSF from the US.
The remittances landed in the previous months recorded a high level of monthly inflows of $1.365 billion. This was recorded due to handsome inflows of foreign exchange sent by overseas Pakistanis from different countries including KSA, UAE, GCC countries, USA and UK.
The exports earnings also supported the macroeconomic indicator of current account along with trade deficit. It was up modestly by 5.0 percent to reach $8.2 billion in four months of the current financial year. On the other hand, imports eased to $14.643 billion from $14.723 billion a year ago in the period under review.
Analysts said the situation of the current account would remain quite stable for coming months, which will have positive impacts on the economy and value of the currency against the dollar.
Arif Habib Securities Vice President and Head of Research Khurram Schahzad said the current account is likely to stabilise in the months to come if the multiple microeconomic indicators continue to show positive developments.
He said the stability in the positive balance of payment situation will also help contain the value of rupee against the dollar.
Topline Research economic analyst Nouman Ahmed said that continuity of surplus current account lies on the trade balance situation of the country. If the petroleum products maintain their current level or go downward, the trade situation will reflect the balance of payment accordingly.
Comparison :
July to October FY 2011-12
$1.65bn deficit
July to October FY 2012-13
$258m surplus
Daily Times - Leading News Resource of Pakistan
