22:04
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ISLAMABAD: A further delay of inflow under the Coalition Support Fund (CSF) by the US is feared to turn the current account surplus recorded in the first four months of the current fiscal year into deficit when November’s figures will start to pour in, said the sources in the ministry of finance on Saturday.
They said the outcome in the form of transference of $600 million under the CSF in a recently concluded Strategic Dialogue held in Washington D.C is quite crucial for Islamabad since non materialisation any further will translate into current account deficit next month and speed up depletion of foreign currency reserves.
Before going to Washington D.C, a top official of the Finance Division was confident that Pakistan would receive $400 to $600 million from the US under the CSF during the current fiscal year.
Pakistan kept enjoying current account surplus of $258 million in July-October 2012 mainly because of breathing space provided by the CSF valued $1.2 billion.
However, despite the inflow of $1.4 billion of remittances a current account deficit of $177 million was registered in the month of October 2012.
The net financial account stood at negative $344 million in July-Oct.
In the first five months of the current fiscal year, the foreign currency reserves plunged by $2 billion.
Since more heavy repayments against IMF’s loan are due in next few months especially in Feb/Mar 2013, this will add insult to the injury by draining foreign reserves, said the sources.
Pakistan has already made a significant installment of $1.3 billion to the Washington-based IMF and major installments are due in December this year and January, March and May next. Importantly, the country has to repay $600 to $700 million in March, indicating a growing pressure on reserves, they added. —Mehtab Haider
They said the outcome in the form of transference of $600 million under the CSF in a recently concluded Strategic Dialogue held in Washington D.C is quite crucial for Islamabad since non materialisation any further will translate into current account deficit next month and speed up depletion of foreign currency reserves.
Before going to Washington D.C, a top official of the Finance Division was confident that Pakistan would receive $400 to $600 million from the US under the CSF during the current fiscal year.
Pakistan kept enjoying current account surplus of $258 million in July-October 2012 mainly because of breathing space provided by the CSF valued $1.2 billion.
However, despite the inflow of $1.4 billion of remittances a current account deficit of $177 million was registered in the month of October 2012.
The net financial account stood at negative $344 million in July-Oct.
In the first five months of the current fiscal year, the foreign currency reserves plunged by $2 billion.
Since more heavy repayments against IMF’s loan are due in next few months especially in Feb/Mar 2013, this will add insult to the injury by draining foreign reserves, said the sources.
Pakistan has already made a significant installment of $1.3 billion to the Washington-based IMF and major installments are due in December this year and January, March and May next. Importantly, the country has to repay $600 to $700 million in March, indicating a growing pressure on reserves, they added. —Mehtab Haider
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