KARACHI - Current account deficit sharply fell to 527 million dollars during the first two month of the current fiscal year, compared with a deficit of $2.676 billion in the same period last year. This containment in the size of the current account deficit is attributed to some improvement, witnessed in external inflows such as financial account and current transfers, especially remittances during the period under review. In July-August, 2009-10, current account balance without off transfers amounted to $529m as against $2.737b in the corresponding two months of FY09. Consequently, entire stock of foreign exchange reserves showed a sign of stability as only SBP gross reserves increased to $11.537 billion (excluding reserves of commercial banks) during July F10 from $6.986b in July-August FY09. The statistics on balance of payments position compiled by SBP for the period ended August 31, 2009 revealed that total goods exports slumped to $3 billion during July-August FY-10 from $3.753 billion of the corresponding months of previous year while imports declined to $5 billion from $6.498 billion in FY09. Trade balance decreased to $1.983 billion in July-August 2009 as against $2.745 billion of last fiscal. Balance of goods and services reached the level of $2.508 billion during the reviewed months as compared to $3.825 billion of FY09. Contrary to the preceding year, current transfers up to $2.432 billion during analytical months of ongoing financial year from $1.850 earlier. Capital account was decreased to $2 million during July-August this year as against $4 million witnessed in the equivalent period of FY09. Financial account increased to $2.142 billion during reviewed period as against $585 million of preceding year wing to bounce back in the inflows of long term loans which recorded at $848 million as compared to $99 million over same months of FY09. The net inflow of foreign investment stood at $412.2 million during July-August 2009-10 against $646.4 million during the same period of last financial year. Similarly, FDI fell slashed to $351m during the two months of current financial year from the inflow of $825m in the corresponding months of the last fiscal year. However, portfolio investment at local stock markets recorded at $61 million in July-August FY10 against $178.3 million negative in the said period of FY09.