KARACHI: Pakistan’s current account has retained its strong position to stand at $748 million with persistent support of foreign exchange inflows by remittances and exports in the period of July-April.
State Bank of Pakistan (SBP) statistics reported on Tuesday that the current account had reported a huge deficit of $3.456 billion in the same period last year.
The country’s exports in April 2011 were reported to reach at record level of $2.38 billion with 40 percent year-on-year growth. On the other hand, the remittances continued to show it high growth with $1.03 billion overall inflows received in April 2011.
The cumulative value of exports has been recorded at $20.18 billion with 27.9 percent growth against $15.773 billion for the period July-April 2010-11, narrowing the trade deficit with high values of imports that stood at $32.263 billion in corresponding month last year.
The remittances sent home by expatriate Pakistani workers have already crossed the $9 billion target set for FY11 as they have reached $9.05 billion in the first 10 months (July-April), showing an increase of $1.74 billion or 23.81 percent compared with $7.31 billion received in the same period last year.
The current account deficit is likely to be less than 2 percent of the GDP, which is remarkable achievement given the fact that just two years back the deficit was almost 6 percent of GDP, the SBP in its report said.