72 percent decline in current account deficit

The country''s current account deficit has narrowed down by 72 percent during first five months of fiscal year 2010-11 mainly due to heavy inflows in home remittances and decline in goods deficit. The State Bank of Pakistan (SBP) revealed on Monday, the country''s current account deficit declined by $1.318 billion during July-November period of current fiscal year.
Current account deficit stood at to $504 million in first five months of fiscal year 20010-2011 as compared to $1.822 billion in the corresponding period of last fiscal year. Statistics show that current account deficit without official transfers declined to $708 million during July-November of fiscal year 2010-11 as compared to $1.881 billion in corresponding period of fiscal year 2009-10, depicting a decline of 62 percent or $1.173 billion.
Statistics show that deficit in the goods, services and income had gradually narrowed down. Goods deficit has posted a decline of $207 million to $4.529 billion in July-November relative to $4.736 billion in same period of last fiscal year. Overall goods imports stood at $13.563 billion and exports at $9.034 billion during first five months of current fiscal year as compared to $12.435 billion imports and $7.699 billion exports in corresponding period of last fiscal year ie 2009-10.
With $1.908 billion exports and $2.933 billion imports overall services sector deficit declined by 18 percent, or $233 million, to $1.025 billion in July-November of fiscal year 2011 against deficit of $1.28 billion in same period of fiscal year 2010. However, income sector deficit witnessed an increase of 7 percent, or $86 million, to $1.285 billion as compared to $1.199 billion in same period of last fiscal year.
Payments under income sector stood at $1.59 billion and earnings at $305 million during the first five months of current fiscal year. Overall deficit, including goods trade, services and income, stood at $6.839billion against current account transfers of $6.359 billion in July-November of fiscal year 2011. Month on month basis, the country''s current account deficit posted a surplus of $54 million, which is also a positive sign.