Pakistan current account deficit FY 2016-17 widens drastically

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Pakistan current account deficit FY 2016-17 widens drastically

KARACHI: State Bank of Pakistan released the economic data for the first seven months of the current fiscal year.

Pakistan’s current account deficit widened by 90% in the first seven months (Jul-Jan) of 2016-17, standing at $4.72 billion compared with $2.48 billion in the same period of the previous year, according to data released by the State Bank of Pakistan (SBP) on Friday.

With the difference between exports and imports being the biggest determinant of current account balance, a deficit/surplus reflects whether a country is a net borrower/lender with respect to the rest of the world.

Increase in the current account deficit means the government faces pressure to address the country’s balance of payments position in the medium- to long-term.