The current account balance deficit continued to widen on each coming month, standing at $2.95 billion in first eight months of the current financial year 2011-12, State Bank of Pakistan (SBP) statistics said, owing to huge trade deficit and lesser foreign exchange inflows.
The current account deficit was stood at deficit stood at $194 million in the same period of last financial year 2010-11, which showed the worrisome situation of external account sector and its pressure on country’s macro-economy.
The country’s international trade has posted a new record high level of $14.59 billion in the first eight months of the current fiscal year, showing an increase of 41.23 percent if facts were compared with trade deficit of $10.337 billion recorded during the same period of last fiscal year, Trade deficit is expected to cross well above the projected deficit target of $14.5 billion during the remaining four months of the ongoing fiscal year 2011-12.
On the other hand, the earning resources were seen limited particularly Foreign Direct Investment (FDI), which dropped significantly by 70 percent to $377.7 million in the period under review.