Pakistan capital market is likely to remain volatile and reactive to the news flows. Exchange rate parity will be the key driver, any bout of currency depreciation, either under the International Monetary Fund (IMF) program or otherwise, may result in …
Read More »Alarming current account deficit; exports should be encouraged
Pakistan’s accumulated current account deficit has reached US$19 billion and it faces payments worth US$9 billion for previously taken loans. However, the fiscal steps taken by the government and monetary policy actions announced by the State Bank of Pakistan have …
Read More »Economic outlook of Pakistan marred by fiscal and external challenges in fy19
The outlook is facing increased uncertainty. In this global context, Pakistan’s economy continues to expand while vulnerabilities mount. Agriculture, industry and services supported GDP growth from the supply side. Consumption continues to drive growth, while investment demand remains sluggish. Accumulating …
Read More »Economic growth hinges upon external balance and materialization of debt
Generally, there are misconceptions that current account deficit (CAD) and depreciation of currency are bad omen for any given economy. Talking of current account deficit, it is quite natural for developing economies to have high current account deficit as it …
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