ISLAMABAD June 4 (APP): Current account deficit is expected to decline to below three per cent of Gross Domestic Product during the outgoing fiscal year, according to Economic Survey 2009-10 - a pre-budget document. The external current account deficit was contained to 5.6 per cent of GDP (US dollars 9.3 billion) in fiscal 2008-09, from a high of 8.3 per cent of GDP in 2007-08 (US dollars 13.9 billion), added the Survey released here today at a press conference addressed by Advisor to the Prime Minister on Finance Senator Dr Abdul Hafeez Sheikh.
Pakistan, the Survey said achieved impressive initial gains in restoring
macroeconomic stability in the aftermath of the balance of payments
crisis of 2008 and as an outcome of determined policy effort.
The fiscal deficit, the Survey depicted, was slashed to 5.2 per cent of
GDP in financial year 2008-09, from 7.6 per cent of GDP in 2007-08, a
fiscal adjustment of 2.4 per cent of GDP.
For outgoing year 2009-10, the fiscal deficit is aimed to be kept in
check at 5.1 per cent of GDP, despite the absorption of unprecedented
security-related spending, stated the Survey.
Foreign Exchange Reserves have been rebuilt to nearly dollars 15
billion, from their low of under dollar six billion in October 2008,
though much of the accumulation is due to releases from the IMF, said
Inflation registered downward trend from 25 per cent in October 2008, to
a recent low of 8.9 percent in October 209, though it has accelerated
sharply of recent and is displaying persistence.
International credit rating agencies upgraded Pakistan from CCC plus to B
Minus by S&P, while Moody’s revised its outlook to Stable.
Challenges, the Survey observed have, however emerged in consolidating
these early gains, with inflation in the economy resurfacing and fiscal