ISLAMABAD (Web Desk) – Pakistan is witnessing a massive reduction in current account deficit (CAD) in the financial year 2023-24, as the central bank says the amount for the July-December period stood at $831 million against $3.63 billion during the corresponding months of 2022-23).
This over $2.8bn or 77 per cent drop comes amid increase in exports and remittances, as Islamabad took a number of measures to tackle challenge after rupee devaluation since April 2022 when the PML-N coalition was able to remove the PTI government through a no-confidence motion.
Read more: Pakistan trade deficit shrinks by 34pc in first half of 2023-24
Having an import-oriented economy, the current account is a key figure for a country like Pakistan as a widening deficit puts pressure on the exchange rate and drains foreign exchange reserves.
Current account surplus of $0.40 billion has been recorded in Dec 2023. Cumulatively, current account deficit improved significantly to $0.83 billion in H1FY24 compared to 3.63 billion in H1 FY23.https://t.co/q3LNv3HOB0https://t.co/Od8ikVvXrd#SBPBOP pic.twitter.com/GWaRBApMoC
— SBP (@StateBank_Pak) January 17, 2024According to the latest figures released by the State Bank of Pakistan (SBP) on Wednesday, the country recorded a $397m current account surplus in December 2023 when compared to $9m surplus in November 2022 and a deficit of $365m in December 2022.
The development comes as the Pakistan’s exports jumped by over 14pc to $3.526bn in December 2023 against $3.089 billion in December 2022.
At the same time, imports were down by 2pc to $4.97bn in December 2023 against $4.98bn in the same period last year.
Read more: Pakistan remittances in Dec recorded at $2.38bn. More than half of it came from Gulf States
Earlier, it was reported that Pakistan recorded $2.381bn remittances in December 2023 against $2.1 billion in the same month last year, showing an over 13pc increase.