Current account deficit in Pakistan register marginal drop by 19% YoY of $ 475 million in November’14 from deficit of $589 million in November’13. Lower current account was possible mainly by reduction in trade, service & income deficit and higher workers remittances. However, current account deficit increase by 113% MoM to $ 475 million in November’14 as against $ 223 million in October’14 due to 4% MoM lower workers remittances and 28% MoM rise in service deficit despite lower trade deficit.
Cumulatively deficit up 9% in 5MFY15
Cumulative current account deficit has increased by 9.3% to $2.34 billion versus $2.14 billion in 5MFY14. This is primarily due to higher trade deficit and income deficit. Trade deficit surge by 16.7% to $8.61 billion comparing $7.37 billion in 5MFY14 on account of disappointing performance of exports and higher import bills. Pakistan exports drop by 2% to $ 9.94 billion versus $ 10.14 billion witnessed in 5MFY14, mainly due to lower textile product exports.
However, higher oil prices and volume hike import bill by 6% to $18.55 billion against $17.51 billion witnessed in 5MFY14. The deficit on account of services drop by 24% to $ 996 million in 5MFY15, compared $ 1,308 million deficit recorded during 5MFY14. Therefore, deficit on trade of goods & services combined hike by 11% to $9.60 billion from $8.68 billion same period last year. Similarly, deficit on the income side rise by 12% to $1.87 billion in 5MFY15 against $1.67 billion in 5MFY14.