Pakistan current account deficit shrinks to $831m in July-Dec 24 against $3.63bn last year

Pakistan current account deficit shrinks to $831m in July-Dec 24 against $3.63bn last year

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The country records a $397 surplus for December

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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.

According 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.