The study looked at what causes Pakistan's current account deficit from 1976 to 2010. They found that the deficit is linked to exchange rates, trade deficits, and government spending. High external debt and low private savings also contribute to the deficit. In the short term, the deficit is affected by exchange rates, trade deficits, and government spending. Exchange rates and external debt can cause the deficit, but the deficit can also lead to more debt and government spending. To improve the situation, the government should be careful with spending, and people should save more to boost the economy.