Failed economy

This refers to the news report ‘Current account deficit widens 148pc to $12.098bln in FY17’ (Jul 20). This is an indicator of a failed economy. Pakistan’s business model has transformed. It has now become a consumer market flooded with foreign goods while the overseas markets for export have steeply shrunk. Both the agriculture and manufacturing sectors, being the engine of growth, are struggling.

The current account gap at 4 percent of GDP, exceeding all expectations, should be a cause for serious alarm, but it has failed to shake the government. The situation hints at a much deepening economic crisis. Devaluation of overvalued rupee, increase in domestic interest rates, higher taxes and rise in utility charges with bout of inflation would be inevitable in the months ahead. As usual the burden is going to fall on the common man.

H Arif (Karachi)