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Qaagi - Book of Why

Causes

Effects

the severe weakness in the export sector due to the high kiwi dollar(passive) is caused by� Current Account deficit

higher expenditures in foreign currencies than the earnings(passive) caused byPakistan ’s current account deficit ( CAD

China ’s loans to Pakistan – mostly designated to fund the China - Pakistan Economic Corridor ( CPEC ) under the Belt and Road Initiativehave contributedto Pakistan ’s widening current account deficit

Rising oil imports and slowing exportshave ledthe current account deficit in India

its large import bill(passive) largely caused bythe deficit in India ’s current account ,

the FactorsInfluencingFiscal Deficit in Pakistan

huge imports of gold and higher costs of crude oil and coal imports(passive) caused byIndia 's large current account deficit

Although 81 countries have now joined the ITA , its negative consequences for countries in the Global South are exemplified by India : After tariffs were ended , multinational telecommunication and consumer electronics corporations imported floods of cheap Chinese IT goods that displaced Indian manufacturers and supplierscreatingIndia ’s high current account deficit

Irrational corrupt indian security agenciescauserising current account deficit in India

These two movesresultedin a “ sharp widening ” of Pakistan ’s current account deficit

the country from being able to pay its foreign debtsto preventthe country from being able to pay its foreign debts

in the past to several balance of payments crisishas ledin the past to several balance of payments crisis

concern about economic imbalanceshas causedconcern about economic imbalances

to worsen again in q2 2013setto worsen again in q2 2013

to risesetto rise

to worsen this yearis setto worsen this year

many problems for the economyhas createdmany problems for the economy

to IMF loan : FPCCI chairperson KARACHImay leadto IMF loan : FPCCI chairperson KARACHI

to its highest point S18bn : SBP - NewsOne PAKISTANsparksto its highest point S18bn : SBP - NewsOne PAKISTAN

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Smart Reasoning:

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