Pakistan’s Current Account Deficit Surges by 388 Percent in September to Touch $356 Million, Reports State Bank; Q1 Deficit Rises by 16 Percent
ISLAMABAD: Official financial data from the central bank showed that the external account balance of the country turned sour in September, with a current account deficit of $356 million.
On a month-on-month basis, the current account deficit saw a spectacular jump of 388 percent, from the revised $73 million in the previous month, the State Bank of Pakistan (SBP) stated.
Some of the key highlights of the SBP Current Account Balance Report are as follows:
Worsening import pressures: Economic analysts say the deficit has been caused by a rise in imports and a corresponding drop in export revenues in the month, making the monthly deficit quite negative.
Official data for the first quarter (July – September) of the current fiscal year (2013-14) showed the total current account deficit for Pakistan was $874 million.
Year-on-Year Comparison: The current account deficit widened by 16 per cent from the corresponding quarter of the fiscal year 2006-07, underscoring the continued macroeconomic difficulties on the external side.