KARACHI: Current account balance posted a $99 million surplus in October,up from a $284 million deficit in the previous month of September, after aperiod of almost four years, the central bank said on Monday.
According to the State Bank of Pakistan (SBP), during the first quarter ofthis fiscal year, current account was negative with cumulative $1.572billion deficit, however in October it has turned positive.
The country’s current account deficit, in the last fiscal year, clocked inat $12.75 billion, down 36 percent from record-high $19.9 billion in FY18.
According to the Pakistan Bureau of Statistics data, trade deficit fell33.5 percent in July-October FY20, while imports of goods dropped 22.9percent to $14.656 billion in the first four months of current fiscal year.
Exports grew slightly by 3.4 percent to $8.220 billion, the SBP datashowed. Foreign direct investment into Pakistan rose 238.7 percent in thefirst four months of the current fiscal year to $650 million.
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Exports of services during the four months clocked in at $1.749 billioncompared to $1.709 billion during last fiscal year. Imports of services, onthe other hand, reached to $3.117 billion compared to $3.076 billion inFY18.
“In particular, onset of fiscal stimulus and successful resolution of tradenegotiations involving major economies would be instrumental in supportingglobal consumer demand, which would in turn bode well for exportingpartners, including Pakistan, along with improved prospects of foreigninvestments,” SBP report said.
The Free Trade Agreement (FTA-II) with China and preferential tradeagreement with Indonesia might also boost exports, it suggested.
