KARACHI: The current account deficit fell by 66.5 per cent in first half of the current fiscal year.
The impressive reduction in deficit during the last six months is likely to bring down the current account in to net positive by the end of this fiscal year.
The SBP data showed the deficit during July-December was $2.153 billion compared to $8.614bn in the same period last year.
The major reason for the fall in current account deficit was the sharp decline in import bill which declined to $22.209bn in the last six months compared to $28.063bn last year.
If the current pace of decline continues, there is a high probability that the current account would end in surplus by the end of this fiscal year.
The deficit in December was $367 million, slightly higher than $364m in November. However, the current account posted a surplus in October.
The exports provided little support with slight increase during the first half inching up to $12.391bn from $11.862bn in the same period last fiscal year.
Exports and imports of services were almost close to the same period of last fiscal.
Published in Dawn, January 19th, 2020