News
CA deficit augments to $1.427b in 1st Qtr
LAHORE, Nov 10 : Pakistan’s current account deficit has further expanded to $1.427 billion in first quarter of the current financial year.
In July and August this fiscal, the deficit was reported at $1.238 billion, which further increased in September because of a substantial jump in imports that triggered trade imbalance and high world oil prices.
In last financial year the current account balance of Pakistan was surplus by $119 million, but it deteriorated sharply this year.
The imports of the country enlarged to $5.701 billion during July-September period of this fiscal as compared to $4.175 billion in the corresponding period of last fiscal. Thus, the imports depicted a bumper increase of $1.526 billion growth in just three months.
The exports of the country, however, showed only $408 million growth and increased to $3.801 billion in first quarter of this fiscal, from $3.393 billion in the same quarter last fiscal.
The unprecedented increase in imports led to a hefty trade deficit of $1.90 billion in the said period of this fiscal as against $782 million deficit in the corresponding period previous fiscal, indicating an increase of $1.118 billion.
The balance of goods and services also remained in deficit by $3.323 billion in first three months of 2005-06, 1.433 billion dollars higher when compared to 1.89 billion dollars deficit in this area during July and September.
Pakistan received 544 million dollars total foreign economic assistance and loans in first quarter of this fiscal, which are slightly lower than 563 million dollars disbursement in July-September period of last fiscal.
The country had obtained 163 million dollars from the Islamic Development Bank while remaining foreign loans and assistance had been obtained from other donors like the World Bank, Asian Development Bank and major donor countries.
The current transfer of foreign exchange to Pakistan amounted to 1.913 billion dollars in this fiscal as against 2.037 billion dollars in last fiscal during first quarter.
Increase in current transfers is being attributed to slight growth in remittances, exports and foreign direct investment in this financial year.
Foreign Direct Investment in different economic sectors amounted to 329 million dollars in three months of this fiscal, from 181 million dollars in the comparative period of last fiscal.
The foreign exchange reserves with the State Bank of Pakistan depleted by 575 million dollars and settled at 9.504 billion dollars during July-September 2005 as against 10.079 billion dollars in the similar period of previous financial year.