This is apropos a Business Recorder op-ed "Worsening fiscal and external balances" carried by the newspaper yesterday. The writer, a former finance secretary, has stated inter alia, that "the poor state of fiscal finances is fully reflected in the balance of payments. The current account (CA) deficit is well on its way to be 5% of GDP, the highest in nearly a decade. In the first three years, the CA deficit had averaged about 1% of GDP. Such an exceptional increase in aggregate demand has been sustained at the expense of losing half the country's reserves and accumulating fresh debt burden of at least $13-15 billion."
The writer has pointed a grim but objective picture of country's economy through a highly informed opinion. Coming as it does on the eve of installation of a caretaker setup in the country means that the nation is bracing for a tough time ahead.
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