By Asad Cheema
ISLAMABAD: Since June 2019, Pakistan has transitioned to a market-based exchange rate, resulting for the first time ever in an orderly two-way movement of exchange rate in the country, which has led to a significant shrinking of the current account deficit, and better fundamentals have facilitated capital inflows.
This was stated by State Bank of Pakistan (SBP) Governor Reza Baqir during an interactive session with leading foreign investors and members of the Overseas Investors Chamber of Commerce and Industry (OICCI), as he shared an overview of the current economic outlook of Pakistan. The fiscal deficit narrowed to 3.8% of GDP (gross domestic product) in Jul-Mar FY20 with the current account balance in surplus for the first time since 2016.†He added, “A year ago, the SBP was being perceived as inflicting tough stabilisation measures after Pakistan had successfully started an economic reform programme to address external and fiscal imbalances.
