Pakistan’s current account deficit widens 63.4pc till Oct

ARSHAD HUSSAIN

The continuous decline in exports and the remittances and rising imports further pushed the country’s current account deficit up to (negative) $1.762 billion in July-Oct in the current fiscal year, according to data released by the State Bank of Pakistan (SBP) on Friday.

The country’s Gross Domestic Product (GDP) has increased to $106.640 billion up by 11.64 per cent in July-Oct 2016-17 compared to $95.493 billion in four months of last fiscal year. The SBP has projected that full year GDP would increase by 5 – 5.50 per cent.

The current account deficit widens by 63.4 per cent to (negative) $1.762 billion in last four months of this fiscal year while it was stood at (negative) $1.078 billion in the same period last year.

An analyst claimed that the current exports and imports situation was not much better while the remittances have been reduced during last four months. The situation of balance of payments in the country was worsening day-to-day, he added. He said central bank’s source of dollar was exports receipts and the remittances, he added.

‘If the situation will not improve, the country’s balance of payment will further deteriorate’, the analyst said. “The central bank is facing payment pressure of international donor agencies including the International Monetary Fund (IMF) as the current account is still hovering in deficit,” he added.

The declining trend in the goods exports continued in July-October 2016-17 and total exports of the country stood at $6.432 billion down by 6.31 per cent compared to $6.865 billion in the same period last year.

The goods import in this period increased by 8.60 per cent to $15.751 billion compared to $14.504 billion.

The trade deficit increased to $9.319 billion in July-October 2016-17 up 22 per cent compared to $7.639 billion in the same period last year.

The country’s direct investment declined by 48.2 per cent and stood at $316.1 million only in July-Oct 2016-17, while its total foreign investment shows a sign of improvement by 48.5 per cent to $1.418 billion.

Overseas Pakistani workers remitted $6.258 billion down by 3.9 per cent in first four months (July to October) of 2016-17, compared with $6.507 billion received during the same period in the preceding year.