Pakistan is witnessing a massive reduction in current account deficit (CAD) 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.
Read more: Pakistan trade deficit shrinks by 34pc in first half of 2023-24
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.
