In August 2023, Pakistan’s current account deficit showed a significant improvement, shrinking by $615 million to reach $160 million. This marks a positive turn from the previous month when the deficit stood at $775 million.
Data provided by the State Bank of Pakistan (SBP) indicates that this current account deficit (CAD) figure is notably lower than the $774 million deficit reported for the same month in the previous year.
Current Account Deficit fell to $160 million in August 2023 compared to a deficit of $775 million in July 2023 and thus improved by $615 million.https://t.co/q3LNv3HOB0https://t.co/Od8ikVvXrd#SBPBOP pic.twitter.com/dIfmdc6Zzk
— SBP (@StateBank_Pak) September 14, 2023
During the initial two months of the current fiscal year, FY24, the current account deficit amounted to $935 million. This marks a notable improvement compared to the deficit of $2.03 billion registered during the same period in FY23.
It’s worth noting that in July, for the first time in five months, the country’s current account showed a deficit. Over the preceding four months, namely March, April, May, and June, the current account had displayed a surplus.
In March, a surplus of $0.79 billion was achieved, followed by a surplus of $0.08 billion in April. May’s current account recorded a surplus of $0.22 billion, while June displayed a surplus of $0.50 billion. The recent shift to a deficit in the last two months can primarily be attributed to the relaxation of import restrictions.