Karachi July 27 2021: State Bank of Pakistan reported that a current account deficit within range of 2-3 percent of GDP is sustainable for on going fiscal year.
The MPC noted that the market-based flexible exchange rate system, resilience in remittances, an improving outlook for exports, and appropriate macroeconomic policy settings should help contain the current account deficit in a sustainable range of 2 - 3 percent of GDP in FY22.
SBP reported GDP at USD 298 billion at the end of fiscal year 2020-21
Notwithstanding this moderate current account deficit, the country’s foreign exchange reserves position is expected to continue to improve this year due to adequate availability of external financing.
