Current Account: Deficit widens between July-February

The current account deficit in February was $260 million, compared with a deficit of $98 million in February 2011.

KARACHI:


Pakistan’s current account deficit widened to $2.952 billion in the first eight months of the 2011/12 fiscal year, compared with $194 million over the same period in the previous year, the central bank said on Monday.



The current account deficit in February was $260 million, compared with a deficit of $98 million in February 2011. The eight months trade deficit widened to $10.515 billion from $7.349 billion.

Pakistan uses dollars to pay for its oil imports, which accounts for about 40% of its total import bill. International oil prices were steady at high levels close to $126 a barrel on Monday.

Asif Qureshi, director at Optimus Capital Management said “The current account deficit is about 1.26% of GDP, and although (that).... may not be that big, financing the current account is still a great challenge because of lack of external aid available.” 

Published in The Express Tribune, March 20th, 2012.
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