Current account deficit in the first 10 months (July-April) of this fiscal year rose to $2.162 billion, reflecting a large trade gap compared to $1.574bn during the year-ago period, the State Bank reported on Wednesday.
The foreign exchange reserves of the country have significantly increased during the last six months, eroding any possibility of default on external payments. However, the current account deficit is still a problem for the country which has increased its reserves with massive borrowing from debt market as well as bilateral sources.
The government recently borrowed $2bn through the sale of Eurobond which helped it build its reserves but could not reduce the deficit. It may liquidate the positive impact of Eurobond.
