SBP failed to manage rupee, reduce twin deficits.

ISLAMABAD -- The Pakistan Economy Watch (PEW) on Saturday said the economic misgovernance and ongoing political struggle in the country is leading to a deterioration of the vulnerable economy.

If the authorities continued to ignore the economy the country will sink further into the mire of problems as it is struggling to stay afloat, it said.

If the current situation does not improve, it will be impossible for the next government to manage the economy which will add to the misery of the people, said Brig. (retd) Aslam Khan, Chairman PEW.

He said that the trade deficit has increased by 70% to $35.4 billion, the current account deficit has reached $13 billion and the central bank's reserves are not enough to cover two months of imports.

Aslam Khan said that exports have increased 25 percent but imports have also jumped by 49 percent washing away the benefit of the increased exports.

He said that...