Sign in Subscribe
  • E-Papers
    • Profit Magazine
    • Pakistan Today
  • Headlines
  • Featured
  • Opinion
    • Comment
    • Editorial
  • Tech
    • Artificial Intelligence
  • World
  • Satire
Sign in
Welcome!Log into your account
Forgot your password?
Create an account
Sign up
Welcome!Register for an account
A password will be e-mailed to you.
Password recovery
Recover your password
Search
Sign inSubscribe
Profit Profit by Pakistan Today
Profit Profit
  • E-Papers
    • Profit Magazine
    • Pakistan Today
  • Headlines
    • Headlines

      Gold price in Pakistan for today, August 27, 2025

      Headlines

      Export, import of gems and jewellery delayed as SRO approval stuck…

      Food

      Wheat hits Rs3,100 per 40kg, flour up Rs500 per 20kg in…

      Headlines

      NA’s Public Accounts Committee questions NDMA mandate, funding, and climate response

      Headlines

      Pakistan on ‘exceptionally high’ flooding alert, says India released water from…

  • Featured
    • Editor’s picks

      The arbitrage loop from hell

      Agriculture

      Climate change, rains devastate 31,596 acres of farmland in KP

      Editor’s picks

      Crescent Star Insurance to buy stake in SG Power

      Exports

      Habib Rice shuts down UAE business over visa constraints

      Editor’s picks

      Staying the course to where?

  • Opinion
    • AllCommentEditorial
      Comment

      Market maker or market wrecker?

      Comment

      Crypto exchanges need to earn Pakistan’s trust with on‑chain protection

      Comment

      Efficiency in manufacturing has to be achieved through cost management

      Comment

      Unlocking Pakistan’s digital potential: why a smarter approach to 5G is…

  • Tech
    • AllArtificial Intelligence
      Tech

      Apple to unveil new iPhones and devices at September 9 event

      Tech

      Meta signs over $10 billion cloud deal with Google, source says

      Tech

      ChatGPT parent OpenAI to launch first India office in New Delhi…

      Headlines

      Pakistan’s new remote sensing satellite declared fully operational

  • World
  • Satire

Current account deficit grows 3.46% MoM to $1.255 billion in November

During July-November FY19, current account deficit nosedived 10.59% to $6.090 billion compared to $6.812 billion in the corresponding period of last year

By
Mohammad Farooq
-
December 19, 2018
0
433
Facebook
Twitter
Linkedin
WhatsApp
Email

    LAHORE: Pakistan’s current account deficit in November rose 3.46% month-on-month (MoM) to $1.255 billion from $1.213 billion in October, according to data released by State Bank of Pakistan (SBP) on Wednesday.

    During July-November FY19, current account deficit nosedived 10.59% to $6.090 billion compared to $6.812 billion in the corresponding period of last year.

    In the period under review, remittances grew by 12.6% to $9.02 billion compared to $8.02 billion in the corresponding period of last year.

    And a decline of 35.4% in trade of services to $1.43 billion in July-November FY19 against $2.21 billion in the same period of last year (SPLY) helped in reining in the current account deficit.

    During November, the increase in current account deficit was attributable to a shortfall in remittances as they plunged 19.58% to $1.608 billion compared to $1.92 billion in October, a decline in exports of 8% ($164 million) and imports fell by 9.4% ($446 million).

    Primary income deficit fell by 8.6% ($44 million) and secondary income decreased by 10.7% ($230 million) MoM to $1,926 million.

    An improvement of $144 million on account of trade deficit was counterbalanced by a $391 million decrease in remittances.

    The devaluation of the rupee has failed to boost exports during the first five months (July-November) of FY19, as they rose a meagre 1% to $9.120 billion compared to $9.04 billion in the corresponding period of last year

    During the period under review, imports declined 1% year-on-year (YoY) to $23.63 billion compared to $23.82 billion in the same period last year (SPLY).

    For the first five months of FY19, trade deficit clocked in at $14.51 billion, down 2% YoY against $14.81 billion in the corresponding period of last year.

    And foreign direct investment (FDI) nosedived 35.2% to $880.7 million in July-November FY19 against $1.359 billion received in the period under review.

    Total FDI inflows of $1.229 billion were received in the July-November period, while investors pulled back $348.7 million, the data said.

    In a comment to Profit, Arif Habib Limited Head of Research Samiullah Tariq said, “Weakness in remittances for the month of November increased the current account deficit and exports haven’t picked up yet, however, imports have slowed down.”

    “As the government’s stabilisation measures start to have an effect, we believe the impact of these measures and the decline in oil price will have a more pronounced effect in the remaining months of the financial year,” he added.

    To rein in demand, the central bank has allowed the rupee to depreciate by 34% to Rs138.94 since December last year and made borrowing expensive by hiking the key interest rate by 425 basis points to 10% at end of last month.

    Pakistan’s current account deficit had swelled to a record high of $18 billion in FY18 mainly due to a surge in imports and less-than-forecast inflows.

    • TAGS
    • BALANCE OF PAYMENTS
    • Current Account Deficit (CAD)
    • exports
    • Foreign Direct Investment (FDI)
    • imports
    • Pakistan's remittances
    • State Bank of Pakistan (SBP)
    • Trade deficit
    Facebook
    Twitter
    Linkedin
    WhatsApp
    Email
      Mohammad Farooq
      The author is an Assistant News Editor at Profit by Pakistan Today. His works have been published in Dawn, Express Tribune, LiveMint India, Huffingtonpost India and The News on Sunday. He tweets @MohammadFarooq_

      RELATED ARTICLESMORE FROM AUTHOR

      Headlines

      Pakistan to launch National Fisheries Policy to boost exports and investment

      Headlines

      Pakistan’s FDI up by 7% in first four months of FY2023-24

      Headlines

      Fish, meat valuing $583.067mn exported in 08 months

      Whatsapp Newsletter
      Email Newsletter News Tips
      Profit by Pakistan Today
      Publishing Editor: Babar Nizami -- Editor Multimedia: Umar Aziz Khan -- Senior Editor: Abdullah Niazi -- Editorial Consultant: Ahtasam Ahmad -- Business Reporters: Taimoor Hassan | Shahab Omer l Zain Naeem | Shahnawaz Ali | Ghulam Abbass | Ahmad Ahmadani | Aziz Buneri -- Sub-Editor: Saddam Hussain -- Video Producer: Talha Farooqi -- Director Marketing : Mudassir Alam | Regional Heads of Marketing: Agha Anwer (Khi) | Kamal Rizvi (Lhe) | Malik Israr (Isb ) -- Manager Subscriptions: Irfan Farooq -- Pakistan’s #1 business magazine - your go-to source for business, economic and financial news.
      Contact us: [email protected]
      • Privacy policy
      Copyright © 2025. Pakistan Today. All Rights Reserved.