KARACHI: Current account deficit and balance of payment crisis are always been two big problems of Pakistan’s economy, said Ateeq ur Rahman (economic & financial analyst).

There was an anticipation that current account deficit will grow but in July-August 2022 current account deficit shrank by 19 percent and fallen sharply by 42 percent.

Under the tightening policy to control inflation and interest rates the several steps were being taken successfully by the authorities such as ban on import of luxury and non-essential items, seeking payment authorisation from the SBP before initiating transactions of importing certain goods and limitation of advance payment for imports against letter of credit.

In order to continue with the decline of current account deficit and balance of payment surplus, exports will have to show faster growth and imports to decline in another two months.

Copyright Business Recorder, 2022