Current account deficit dropped by 4.4% in six months: finance ministry spokesperson

KARACHI: The spokesperson for the Ministry of Finance on Friday said the pressure on external account is decreasing and the current account deficit dropped by 4.4% in six months.

Finance Ministry spokesperson Dr Khaqan Najeeb while speaking to a private channel said, “In the first six months of the current fiscal year, economic numbers showed better performance.”

“Remittances showed a growth of 10% from July to December,” he added. The spokesperson further said, “Foreign investment in December 2018 fared better by 17% compared with December 2017.”

Dr Najeeb added that the trade deficit shrank by 5% in the last six months.

“Exports grew by 2% and imports fell by 2% in the first six months of the fiscal year,” he stated.

Following imposition of regulatory duty on 1994 tariff lines their import dropped by 23% percent in the first six months over the same period last year, Dr Najeeb shared.

“The pressure on external account is decreasing and the current account deficit in the first six months dropped by 4.4% compared to the same period last year.”

Meanwhile, private sector borrowing reached Rs496 billion in the first six months of the current fiscal year as compared to Rs232 billion of the same period last year, he continued.

“During the first three months of the current fiscal year, agriculture sector borrowing increased by 36% to reach Rs212 billion,” the Finance Ministry spokesperson said.