Pakistan is witnessing a massive reduction in current account deficit 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. 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 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.
