KARACHI: According to sources, the latest State Bank data show external payment pressure rose sharply in September. The current account deficit widened to $356 million from $73 million in August.
For the first quarter of the fiscal year (July-September), the balance of payments was $3.12 billion in deficit, against a $274 million surplus in the same period last year. The quarterly current account deficit came in at $874 million, compared with $755 million a year earlier.
Merchandise trade is the main drag. First-quarter goods imports rose 14.3% to $17.78 billion while exports grew 7.7% to $8.45 billion, pushing the goods trade deficit up 21.1% to $9.33 billion. In September alone, exports climbed 15.5% to $3.02 billion, but imports jumped 22.7% to $6.17 billion.
Some indicators were more encouraging. Workers' remittances rose 14% to $10.88 billion in the quarter, though September inflows dipped to $3.59 billion from $3.66 billion in August. Services exports grew 22.8% to $2.72 billion, with IT and telecom contributing $1.25 billion, and foreign direct investment rose 20% to $720 million.
The report says September saw a net portfolio inflow of about $2.87 billion, mostly in debt securities. The SBP table put gross foreign exchange reserves at $22.88 billion in September, up from $18.49 billion in August.
On Friday, the rupee gained one paisa to close at Rs276.91 against the dollar in the interbank market.