Increasing Current Account Deficit is a challenge, Govt. should search new markets to increase exports, Hike in oil prices to exacerbate economic situation.

0
6392

December 21, 2016

Chairman Businessmen Panel and Pakistan Business Group Alliance of FPCCI and Former Provincial Minister Mian Zahid Hussain, Presidential Candidate Abdul Rahim Janoo and Candidate for SVP Mian Anjum Nisar for FPCCI Elections 2017 on Wednesday said Current Account Deficit (CAD) has touched the mark of 2.6 billion dollars in the first five months of this fiscal which is worrying. If this situation continues, this deficit may increase to US$ 6.5 billion.

Last year the deficit during the first five months was 1.36 billion dollars which has jumped to 91 percent in the current year, they said.

They said that any hike in the oil prices will have a very negative impact on the overall economic situation therefore government should take notice of state of affairs.

The Business Leaders said that current account deficit in the first four months was 63 percent as compared to the last year which has now jumped to 91 percent which is a threat to balance of payment of situation.

Compared to last year’s GDP of 1.1 percent, the budget deficit for the current fiscal has increased to 2 pc. Last year exports during the first five months stood at 8.83 billion dollars which have now dipped to 8.7 billion dollars however the exports in the months of November improved a bit, they informed.

They further said that last year country imported goods worth 16.4 billion dollars which have now jumped to 17.3 billion dollars and that this trend must be reversed to save forex reserves.

The BMP Leaders said that falling exports and investment has shifted focus to remittances that cover half of the import bill but unfortunately the same have gone down by 1.6 percent in the first five months of the ongoing fiscal.

Dec 21, 2016 English Dec 21, 2016 UBR copyJang - KarachiNawa-e-waqtDunyaJasarat Ausaf Beopar

LEAVE A REPLY