Karachi, May 18, 2012 (PPI-OT): Pakistan’s current account deficit (CAD) has increased to USD 3.394 bn during Jul–April FY12 period as against a Current Account surplus of USD 466 mn in the same period last year, according to the data released by the State Bank of Pakistan (SBP).
According to Alfalah Securities Limited, the CAD reached 1.7% of the GDP during the first 10 months of FY12 as against a surplus of 0.3% of the GDP last year. The GDP is estimated at USD 198.13 bn for the period as against USD 175.64 bn in July– April FY11. The CAD has deteriorated mainly due to rising trade deficit and repayment of foreign debt obligations. A rising CAD is expected to have serious repercussions on the economic well-being of the country as it would exert pressure on the foreign exchange reserves which would in turn lead to devaluation of Pak Rupee against US Dollar.