Lahore - After facing deficit for straight four months, the Current Account posted a surplus of $157 million in Feb 2016 against the revised deficit of $590 million in Jan 2016, whereas $747 million improvement was largely driven by a reduction in Goods Trade Balance from $430 million to $1,119 million.

As per the State Bank of Pakistan’s (SBP)statistics, exports of goods edged up from $163million to $1,871million, while the imports of goods dipped from $267million(-8.2 percent MoM) to $2,990million.

Moreover, improvement in Secondary Income ($148million or 9.5 percent MoM) on the back of 4 percent MoM (or $53mn), higher remittances and 114 percent MoM (or $99mn), higher other current transfers also helped turn current account’s deficit into a surplus.

Note that surplus developed after four consecutive monthly deficits. Resultantly, current account marked an improvement of 4.5 percent YoY in 8MFY16, whereas the current account deficit improved to $1,859 million (0.9 percent of GDP) versus 8MFY15 deficit of $1,947million(1.1 percent of GDP) on the back of 6 percent YoY lower import bill.

Feb, 2016 Balance of Payment (BOP) posted a nominal deficit of $2mn vs. Jan, 2016 deficit of $415m, as improvement in C/A balance (+$747 million) more than compensated for the $114m expansion in Financial Account deficit and $221m deterioration in Error/Omission head. It takes 8MFY16 BOP surplus to $1,041m compared to a surplus of $1,296m in the corresponding period last year.

Large Scale Manufacturing (LSM) grew by 4.12 percent YoY in 7MFY16 as industrial activity improved. Contributions from major sectors included those from automobiles (24.98 percent), non-metallic mineral products (13.01 percent), fertilisers (11.98 percent), chemicals (10.15 percent), food & beverages (6.72 percent) and pharmaceuticals (5.59 percent).