The State Bank of Pakistan (SBP) has reported a significant reduction in the domestic current account deficit (CAD) for September 2023. In this month, the deficit amounted to just $8 million, showcasing a remarkable decline.
Moreover, when comparing the CAD for September 2023 with the same month in the 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 financial year, the current account deficit stood at $940.7 million, marking a substantial improvement over the previous financial year when it exceeded $2.25 billion.
This reduction in the current account deficit is in line with the overarching target set for the current financial year, which aims to maintain the deficit at $6 billion.
Highlighting the positive trend, it's worth noting that in August 2023, the current account deficit was $16.4 million. Within just one month, there has been a significant improvement, with the deficit decreasing by $156 million, as reported by the central bank.