KARACHI: Governor State Bank of Pakistan (SBP) Raza Baqir has said country’s debt has reached 80 percent of GDP.
Addressing a seminar in Karachi he said Pakistan is facing two crucial problems including current account and financial deficit.
He went on to say 2 billion dollars current account deficit had never been witnessed in the history of the country. Current Account Deficit had touched record level of 2 billion dollars during 2014 to 2017.
He stated the second major problem being faced by national economy is fiscal deficit. The foreign exchange reserved continued to fall due to growing fiscal deficit.
Raza Baqir said there are internal and external causes behind price hike. Step were taken on interest rate and Mubadala rate to counter challenges.
Under exchange rate rupee value fell and country’s debt reached 80 percent of GDP.
He pointed out exports are witnessing improvement following devaluation of rupee. During previous financial year country’s exports were recorded 12 percent while this year exports volume have soared to 27 percent. Now monthly current account deficit has reduced to below half.
He remarked exchange rate was kept subordinate to demand and supply of market in 2019. SBP is keeping an eye on exchange rate and steps can be taken in regard to exchange rate when needed;