FY 2011-12; Pakistan’s current account deficit increase
Tuesday, July 17th, 2012 7:06:46 by Fayyaz Yaseen
Islamabad: (Tuesday, July 17, 2012) Pakistan’s current account deficit has increased to $ 4.52 billion in the fiscal year 2011-12 ending in June this year.
Eleven months ago, the current account deficit stood at $ 3.93 billion, confirmed sources at State Bank of Pakistan here today.
Contrary to the current dismal fiscal stats, the bank noted a surplus of $ 214 million in the previous fiscal year, which, amid reasons as varied as increased debt repayment burden and a wide gap between imports and exports of
the country, has gradually dwindled and then disappeared.
Amid a below the mark performance on economic fronts, world’s leading rating agency, moody has also decreased Pakistan’s rating from B3 to Caa. Due to sustained negative rating of Pakistan, the foreign direct investment, that stood
above 8 billion dollars in 2005-6, has reduced on $ 0.8 only.
Moreover, the IMF has also noted that the standby arrangements worth $ 11 billion have also gone wasted as they could not avail the desired results due to mis-governance of the current political regime.
If stringent corrective measures are not taken, Pakistan’s financial situation remains to be fragile and will get more and more vulnerable with each passing day. The only way to salvage economy of the country is to introduce comprehensive
economic reforms in the country and to implement and pursue them with national esteem and vigor as it has now become a do or die situation for the country.
Short URL: https://www.newspakistan.pk/?p=29056
Posted by Fayyaz Yaseen
on Jul 17 2012. Filed under Business, Pakistan.
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