Lahore, Nov. 27 -- Pakistan's hopes for an economic revival have dimmed yet again as its current account deficit widens, undermining growth expectations for FY 2025-26, according to a new analysis by the Lahore School of Economics (LSE). The report paints a troubling picture of an economy still unable to break free from structural weaknesses and external vulnerabilities, as reported by The Express Tribune.

According to The Express Tribune, the LSE Modelling Lab and Innovation & Technology Centre projects GDP growth to stagnate at 2.4%, the same as the previous fiscal year, after the country slipped back into deficit in the first quarter.

The study attributes this stagnation to Pakistan's chronic dependence on external inflows and its in...