Karachi: The financial year started with surplus current account (C/A) has ended up with huge deficit of $4.51 billion in 2011-12.
The current account has been witnessed in the red zone throughout the financial year except couple of months however the deficit widened steeply in the closing month of July at $586 million.
The country‘s exports were recorded at $23.64 billion compared with $24.81billion in the same period last year, depicting a decline of 4.71 percent. The major exports in textile sector witnessed decline in values mainly in the international market though rest of the sectors could not fetch significant earnings through big orders to break the record of highest ever exports.
Besides, imports of commodities rose by 11.13 percent to $44.91 billion during the same period from $40.41 billion recorded in the last fiscal year. The high petroleum products and machineries were the main expense carried their weight in the imports bill.
On the other hand, Foreign Direct Investment (FDI) fall by 50 percent with merely $812 million direct and portfolio investment recorded in business and stocks in 2011-12 compared with $1.634 billion in its previous financial year.
The remittances however registered record inflows of $13.1 billion in the history of the country but the source is not enough alone to maintain current account in surplus.
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