first quarterly report for fy05 67 external sector 6 1 balance of payments a sharply reduced current account surplus and widening financial deficit easily offset the impact one off surge in capital this dragged down pakistan s overall into us 559 million during q1 sharp contrast to 578 recorded fy04 see table 89 percent yoy fall owes reduction non structural flows 2 increasing imports mainly reflecting accelerating aggregate demand domestic economy as well high international commodity prices especially oil interestingly worsening net large rise both reflect 495 debt relief by usa fact adjusting flow it becomes clear that drops mere 26 line with trends previous quarters while deficits also sees 25 4 decline
