The State Bank of Pakistan (SBP) has reported a significant reduction inthe domestic current account deficit (CAD) for September 2023. In thismonth, the deficit amounted to just $8 million, showcasing a remarkabledecline.

Moreover, when comparing the CAD for September 2023 with the same month inthe previous fiscal year (FY23), a substantial shift is evident. In FY23,the deficit was $360, making the current year’s deficit of $8 million a 95%year-over-year and month-over-month reduction.

Looking at the broader picture, during the first quarter of the financialyear, the current account deficit stood at $940.7 million, marking asubstantial improvement over the previous financial year when it exceeded$2.25 billion.

This reduction in the current account deficit is in line with theoverarching target set for the current financial year, which aims tomaintain the deficit at $6 billion.

Highlighting the positive trend, it’s worth noting that in August 2023, thecurrent account deficit was $16.4 million. Within just one month, there hasbeen a significant improvement, with the deficit decreasing by $156million, as reported by the central bank.