Deficit narrows to $533m during July to October

Current account deficit narrows to provisional $533 million, compared with $1.177 billion in the same period last year

KARACHI: The current account deficit for July-October narrowed to a provisional $533 million, compared with $1.177 billion in the same period last year, the State Bank of Pakistan (SBP) said on Tuesday.

“The main reason for the narrowing of current account deficit is increase in remittances along with an increase in exports which subsequently has narrowed the trade deficit,” said Khalid Iqbal Siddiqui, Director at Invest and Finance Securities Limited.

“The current account has been narrowing and is supported by higher remittances by overseas Pakistanis,”
according to Asad Iqbal, Chief Investment Officer at Faysal Asset Management Limited.

In October, the current account stood at a provisional surplus of $35 million, compared with a surplus of $424 million in September, the State Bank said.

Published in The Express Tribune, November 17^th, 2010.