The resultant situation is worrisome as slow economic growth and increasing fiscal imbalance is preventing the government to cater the needs of the growing population. This was a great shock to the macroeconomic situation as it gave rise to many more problems our economy is currently facing. CPEC related outflows have elevated current account deficit and risen external debt servicing and this may lead to higher external financing needs in the future. Apart from this, the country’s economy is facing a sizable increase in current account deficit and fiscal deficit. Keeping in view the liquidity position, the government may be left with no choice but to cut its non-development and administrative expenditures to reduce fiscal deficit.

Source: Pakistan Today August 01, 2018 17:03 UTC