Pak Current Account Gap Widens

Pakistan’s current account deficit widened 28.74% on a month-on-month basis to $1.61 billion in January 2018 compared to $1.25 billion in December 2017; suggesting the recent corrective measures the government has put in place to curb the gap have largely gone in vain, APP reported. The government of Prime Minister Shahid Khaqan Abbasi devalued the rupee by around 5% against the US dollar in December in a bid to boost exports. It also slapped additional regulatory duty on imports of over 350 items to slow down the ballooning imports. The larger objective of the measures was to control the trade deficit. Cumulatively, in the first seven months (July 2017 to January 2018) of the current fiscal year, the current account deficit, however, is seen shrinking in ‘percentage terms’ when compared with figures of the previous six months which might be due to revised numbers. The deficit widened 48% in the first seven months of the current fiscal year to $9.15 billion. This is, however, lower than 59% ($7.41 billion) in the first six months (July-December 2017), according to the State Bank of Pakistan.