Karachi, June 19, 2012 (PPI-OT): Pakistan’s current account deficit (CAD) has increased to USD 3.77 bn during Jul–May FY12 period as against a deficit of USD 79 mn in the same period last year, according to the data released by the State Bank of Pakistan (SBP).
According to Alfalah Securities Limited, CAD has reached to 1.7% of GDP during the first 11 months of FY12 and is expected to touch USD 4 bn mark till the end of FY12, if the same trend continued. On the other hand, CAD during the month of May 2012 stood at USD 414 mn as against USD 545 mn in the same period last year and USD 275 mn in April 2012.
CAD has deteriorated mainly due to rising trade deficit, lack of external inflows and repayment of foreign debt obligations. A rising CAD is a grave concern to the economic well-being of the country as it has exerted pressure on the foreign exchange reserves, which have dropped to USD 15.417 bn, and has led to steep devaluation of Pak Rupee against the US Dollar.