PSX Clarity
C
Glossary · PSX term

Current account deficit.

A current account deficit means a country spends more on imports and payments abroad than it earns.

Definition

Pakistan's current account balance, driven by trade, remittances, and services, signals external pressure when in deficit and can weigh on the rupee and reserves. Markets watch it closely for currency and policy clues.

Worked example

If imports far exceed exports plus remittances, Pakistan runs a current account deficit that can pressure the rupee.

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