Current account in Pakistan register surplus of $76 million during Dec’14 from deficit of $568 million in Nov’14. The current account surplus was made possible mainly by reduction in trade deficit, service deficit, income deficit along with higher workers remittance.
Deficit modestly shrinks to $2.36 billion
Due to current account surplus in December, cumulative current account deficit has decreased to $2.36 billion versus $2.44 billion in 5MFY15 but still higher comparing 1HFY14 to $ 2.01 billion mainly due to higher trade and income deficit. Trade deficit enlarge by 13% to stand at $9.77 billion against $8.64 billion in same period last year. Pakistan exports drop by 2% to $ 12.22 billion versus $ 12.46 billion witnessed in 1HFY14, mainly due to lower textile product exports. On the other hand, surge in oil prices and volume, hike import bill by 4.2% to $ 21.99 billion against $21.10 billion witnessed in 1HFY14. The deficit on account of services drop by 21% to $ 1,195 million in 1HFY15, compared $ 1,507 million deficit recorded during 1HFY14. Therefore, deficit on trade of goods & services combined surge by 8% to $10.96 billion from $10.14 billion same period last year. Similarly, deficit on the income increase by 15% to $2.31 billion in 1HFY15.
Remittances sent home by overseas Pakistanis continued to show a rising trend as it recorded $1.58 billion in December 2014 compared to $ 1.32 billion in November 2014, showing a surge of 20% MoM. Cumulative remittances increased by 15% at $8.98 billion in 1HFY15 versus $7.79 billion in 1HFY14.