Pakistan’s current account deficit worsens
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KARACHI: Pakistan’s economic situation is worsening with each passing day which is depicted by the soaring fiscal deficit.
Pakistan’s current account deficit widened by 63% in the first four months (Jul-Oct) of 2016-17, increasing to $1.76 billion from $1.08 billion in the same period last year, according to data released by the State Bank of Pakistan (SBP) on Friday.
With the difference of exports and imports being the biggest determinant of the current account balance, a deficit/surplus reflects whether a country is a net borrower/lender with respect to the rest of the world.
The 63% increase in deficit means the government faces pressure to address the country’s balance of payments position in the medium- to long-term.
