KARACHI - Pakistans current account deficit narrowed to $1.758 billion during the first half (July-December) of current financial year, compared with $7.846 billion in the same period of last year. Current account deficit amounted to 391million in December 2009. The State Bank of Pakistan reported on Tuesday that countrys overall external account recorded a surplus of $1.387 during July-December FY10 compared to a deficit of $4.754 billion in the corresponding period of previous year. This improvement owed to both, a considerable compression in current account deficit and an increase in the financial account surplus. Moreover, broad based rebound in all sub accounts, i.e. trade, services, income and current transfers reached current account at a desirable level of $1.758 billion during Jul-Dec FY10. Consequently, entire stock of foreign exchange reserve showed a sign of stability as only SBP gross reserves increased to $12.863 billion (excluding reserves of commercial banks) during July-Dec FY10 from $7.833 billion in July-Nov FY09. According to SBP balance of payments statistics, current account balance without off transfers stood at $2.59 billion in July-Dec FY10 as against $7.934 billion in the equivalent six months of FY09. Total goods exports fell to $9.306 billion during July-December FY10 from $100.9 billion of the corresponding months of previous year, while imports declined to $15.020 billion from $18.306 billion in FY09. Trade balance decreased to $5.714 billion in July-December FY10 as against $8.217 billion of last fiscal year. Balance of goods and services reached the level of $7.246 billion during the reviewed months as compared to $10.556 billion of FY09. Services account deficit contracted to $1.880 billion in July-December FY10 as against $2.074 billion previous year. From July 01 to December 31 2009, deficit in income stood at $243 million as compared to $208 million during last fiscal year. Similarly, current transfers increased to $7.011 billion during analytical months of ongoing financial year from $5.167 year earlier. Contrary to previous year, capital account dipped to $50 million during July-December this year as against $72 million witnessed in the equivalent period of FY09. Financial account slightly rose to $3.192 billion during reviewed period as against $3.024 billion of preceding year due to improvement in the inflows of long-term loans recorded at $2.001 billion as compared to $1.726 million over same months of FY09.