C/A surplus at $748m in 10 months

KARACHI - Pakistans current account has recorded a surplus of $784 million in the first ten months of current fiscal year 2010-11 against deficit of $3.456 billion in the same period of last year due to rising remittances from overseas Pakistanis and steady exports, the SBP reported on Tuesday. The current account deficit lowered to 0.5 per cent of GDP when compared to the growth of 2.4 per cent of GDP during the same period last year. The reduction in the growth of current account deficit was caused by increase in exports and record inflow of current transfers especially workers remittances. The current transfer increased to $12.907 billion in Jul-Apr FY11 from $10.458 billion during the same period of previous fiscal year. According to balance of payments statistics released by the State Bank of Pakistan yesterday, as on April 30, 2011 current account balance without off transfers amounted to $271 million against $3.866 billion over the equivalent period of FY10. Trade account, which is the largest component of the current account, declined to $8.285 billion compared to $9.292 billion. Balance of goods and services stood at $9.677 billion during the first ten months of current financial year against $11.229 billion in the past year. Total goods exports rose to $21 billion during Jul-Apr FY11 from $17 billion of the reported period of the previous year while imports also up $29 billion from $26 billion. From July 01 to April 30, 2011, capital account dropped to $86 million against $154 million while financial account declined to $412 million against $3.533 million due to delay in IMF funding and below than expected financing from the other international financial institutions.