Trade deficit remained high but did benefit from export pick up (though growth remained below FY04-06 trends) import compression and was financed by the continued growth in remittances by 22%. During July-October 2007, Pakistan recorded a surplus of $ billion in the capital and financial account compared to $ billion last year.
Most of the surplus emerged from debt flows as the equity flows were impacted by outflows in SCRA restricting the net inflow to $ 124.4 million during July-21 to November 2007 and postponement of launching of new privatization.