The current account deficit rose in the first month of this fiscal year, both as compared to July last year and June 2014.
The State Bank reported on Friday that the current account deficit on July 15 was $454 million, much higher than $125m a year earlier.
Despite very high remittances of about $16bn, the current account deficit is a serious concern for the government which has borrowed heavily from the international market on unexpectedly high rate of return. This could further escalate the seriousness of imbalances on the external fronts.
