SBP expects current account deficit to be 2-3pc

The State Bank of Pakistan (SBP) has kept the policy rate unchanged at 7 per cent in the hope that the current account deficit will remain in the range of 2 to 3pc of GDP in FY22.

Announcing the Monetary Policy for the next two months here on Tuesday, SBP Governor Dr Reza Baqir said: “Given expected resilience in remittances and an improving outlook for exports, the current account deficit is expected to converge towards a sustainable range of 2-3pc of GDP in FY22.”

He said that as a result of positive developments, growth is projected to rise from 3.9pc in FY21 to 4-5pc during the current financial year, and the average inflation to moderate to 7-9pc this year from its recent higher out-turns.