Karachi - The Current Account (CA) deficit witnessed a jump of 29pc YoY in 4MFY15 to $1.7b as against $1.4b during same period last year and settled at 1.8pc of GDP as against 1.7pc last year.
The rise in deficit primarily ascribed to 28pc YoY increase in trade deficit and 12pc YoY increase in income deficit . However, 26pc YoY drop in services deficit has supported the current account . The income deficit stood at $1.3b v/s $1.2b during comparable period last year.
Workers’ remittances from aboard remained at $6.1b in 4 MFY15; up by 15pc YoY which helped narrowing the trade deficit during the period under review.
On MoM basis, CA deficit increased by enormous 339pc to $347m in Oct14 whereas the same was $79m in Sept 14. Trade, service and income deficit MoM took the overall CA deficit higher. In addition to this 19pc MoM fall in remittances growth further increases the CA deficit . During 4MFY15 trade deficit depicted an increase of 28pc YoY to $7.5b mainly on account of 10pc YoY jump import. The imports were settled at $15.5b in 4MFY15 as against $14.2b during same period last year. A 3pc drop in export further widened the trade deficit during the period.Although textile export (which contributes 60pc on total export) are likely to remain subdued on poor gas supply during upcoming winter season however the falling international oil prices is likely to reduce import bill more than offsetting. Analysts are of the view that current account balance may witness some improvement going forward.