Islamabad: Pakistan’s Current Account Deficit (CAD) in August shrank by 42.13%, the State Bank of Pakistan reported on Wednesday.
According to the monthly report published by the Central Bank on the balance of payments, on a Month-on-Month basis, the current account deficit shrank by 42.13% during August of the fiscal year 2023 and fell to $0.7 billion from $1.21 billion recorded a month earlier.
Current Account Deficit (CAD) fell to $0.7bn in Aug compared to $1.2bn in Jul. Cumulatively, Jul-Aug FY23 CAD declined by $0.5bn to $1.9bn compared to the same period last year mainly due to increase in exports by $0.5bn & contraction in imports by $0.2bn. https://t.co/q3LNv3HgLs pic.twitter.com/lpPFFNTf06
— SBP (@StateBank_Pak) September 21, 2022
According to the report, exports of goods in August amounted to $2.8 billion.
Similarly, imports amounted to $5.75 billion during the second month of FY23.
However, on a year-on-year basis, the current account deficit also dropped by 53.84% during August because $1.52 billion of deficit was recorded during the same period last year.
According to the State Bank, cumulatively, July-August CAD declined by $0.5 billion to $1.9 billion compared to the same period last year, mainly due to the increase in exports by $0.5 billion and contraction in imports by $0.2 billion.