KARACHI: Pakistan’s current account further widened to stand at $2.5 billion in the 11 months of financial year 2013-14 with no control seemingly on the balance of payment situation due to persistent deficit of trade.
The State Bank of Pakistan (SBP) statistics released on Thursday showed current account deficit was 16 percent higher than the imbalance of payment recorded corresponding period of last year. The current account witnessed deficit of $147 million in May as against $111 million in April and more than $90 million in March showing its uncontrolled situation despite various indicators including trade deficit witnessed shrink in the period under review. The country’s trade deficit narrowed down by 5.66 percent in July-May 2013-14, as compared to the corresponding period of last fiscal year, according to Pakistan Bureau of Statistics.
The trade deficit declined to $17.665 billion in July-May 2013-14 as compared to $18.725 billion in July-May 2012-13 after 3.71 percent increase in exports and 0.57 percent decrease in imports.
The country’s exports increased to $23,112 million in July-May 2013-14 against $22,286 million of the same period a year ago whereas its imports decreased to $40,777 million as compared to $41,011 million over the same period in the corresponding fiscal year. In addition to positive growth in exports higher foreign remittances also eased-off the rising C/A deficit up to some extent. The remittances played its part as always positive in the economy showed a 12 percent growth in terms of year-on-year crossing $14 billion in the eleven months period. It has been already predicted C/A deficit widened further in May 14 with less probability of remaining CSF receipts and likely increased imports of Furnace Oil FO import whereas textile exports growth to remain subdued on the impact of stability in local currency, poor gas and power supply to the sector.
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