Daily Times

KARACHI: Pakistan’s current account deficit has further widened by 152 percent due to fall in exports by 14 percent, reduction in worker’s remittances by 36 percent during the first month (July) of financial year 2016-17, the central bank said on Friday.

Balance of payment figures released by the State Bank of Pakistan (SBP) showed that the current account deficit dropped almost double to $591 million during
July FY17 from $234 million in the same period of last year.

Worker’s remittances have dropped by 36 percent or $335.43 million as the country received only $1.328 billion as compared with last year’s of 1.663 billion dollars. The central bank data further revealed that during July FY17 the exports also presented a shady picture as it was dropped by 14.28 percent or $251 million (during July FY17) to $1.506 billion from $1.757 billion of July FY16.

The imports witnessed a decline of 13.72 percent or $492 million (July FY17) to $3.094 billion from $3.586 billion in the same period of last year.

The data also revealed that the country also witnessed deficit on export of services by 53.35 percent or $374 million to $327 million from $701 million in the July FY16.

Pakistan’s Balance on Trade in Services posted a similar picture as it was reduced by 470 percent or $239 million to $290 million from 51 million was witnessed during FY16.

Country’s Balance on Trade Goods registered a decrease of 13.1 percent or $241 million to 1.588 billion from $1.829 billion in the same period of last year.

Pakistan’s balance on trade in goods and services posted a similar picture as it was increased by 5.62 percent or $100 million to $1.878 billion from $1.778 billion in the same period of FY16. The inflows of foreign direct investment into Pakistan registered a decline of 14.6 percent or $11 million to $64.3 million from $75.3 million in the same period of last year.