Karachi: The Governor State Bank of Pakistan Tariq Bajwa said that the current account deficit of the country will be resolved in the next two years, as per a news report. This statement came while Bajwa was addressing a meeting at the Korangi Association of Trade and Industry. He added that the country’s forex reserves are under pressure because of increased imports. As a result, the trade deficit has increased to USD 36 billion, while reserves have decreased to USD 11 billion.
Bajwa said that the Small and Medium Enterprises (SME) contribute to 70% of the country’s economy, however, lending by commercial banks to these has dropped to 8% this year, from 17% during 2006-07. Bajwa also directed commercial banks to introduce policies which would increase lending to the SMEs.
