Current Account deficit reduces in July 2011

KARACHI: The current account has shown a deficit of $75 million in the first month of current financial year despite standing at surplus position in the previous month.

The State Bank of Pakistan (SBP) on Wednesday updated statistics, which depicted that current account deficit decreased by 88 percent in July 2011 as compared to the same month of the previous fiscal year in which it stood at $631 million. High import bill on the surge of commodities’ value and quantity reflected the negative balance of payment despite handsome remittances and exports earnings.

The trade deficit stood at $1.029 billion in July with $2.12 billion exports and $3.15 billion imports. The imports of petroleum products have increased the weight of balance despite handsome exports values. On the other hand, remittances and foreign investment offset trade deficit impacts with inflow of $1.096 billion and $62 million.

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