xiaahmad
Chief Minister (5k+ posts)
Current account deficit widens 210%,stands at $2.05b
KARACHI: Pakistan’s current account deficit (CAD) widened by a massive 210% in July 2017, standing at $2.05 billion compared to $662 million in the same month of previous year, according to the State Bank of Pakistan (SBP) data released on Monday.
“The government needs to take assertive actions as soon as possible to arrest CAD and control the decline in foreign exchange reserves,” a Topline Securities report said on Monday.
Some of the measures that the government must take immediately, the report added, could be rupee devaluation, levy of regulatory duty on non-essential imports, export promotion, floating dollar bonds, bilateral borrowing, etc.
Pakistan has already posted a much higher-than-expected CAD of $12.1 billion (4% of gross domestic product – GDP) in the previous fiscal year ended June 30, 2017.
The report predicted that this year’s CAD may reach $16 billion (5% of GDP), the highest since fiscal year 2008, which would be subject to revision if the above trend persisted.
The deficit is growing due to heavy debt servicing, recovering oil prices and weak exports. Analysts say in the current scenario of falling foreign currency reserves, the rupee’s depreciation and monetary tightening in the next few months cannot be ruled out.
Source
EXPORT WAY LESS THAN ZARDARI TIME EVEN
KARACHI: Pakistan’s current account deficit (CAD) widened by a massive 210% in July 2017, standing at $2.05 billion compared to $662 million in the same month of previous year, according to the State Bank of Pakistan (SBP) data released on Monday.
“The government needs to take assertive actions as soon as possible to arrest CAD and control the decline in foreign exchange reserves,” a Topline Securities report said on Monday.
Some of the measures that the government must take immediately, the report added, could be rupee devaluation, levy of regulatory duty on non-essential imports, export promotion, floating dollar bonds, bilateral borrowing, etc.
Pakistan has already posted a much higher-than-expected CAD of $12.1 billion (4% of gross domestic product – GDP) in the previous fiscal year ended June 30, 2017.
The report predicted that this year’s CAD may reach $16 billion (5% of GDP), the highest since fiscal year 2008, which would be subject to revision if the above trend persisted.
The deficit is growing due to heavy debt servicing, recovering oil prices and weak exports. Analysts say in the current scenario of falling foreign currency reserves, the rupee’s depreciation and monetary tightening in the next few months cannot be ruled out.
Source
EXPORT WAY LESS THAN ZARDARI TIME EVEN
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