State Bank of Pakistan (SBP) data issued on Thursday showed that the current account deficit (CAD) contracted to $8 million in Sept this fiscal year from $164m during August FY2024.

The details showed that imports declined. Imports fell to $3.99 billion in Sept as compared to $4.28bn in August. Exports saw a modest increase — from $2.43bn to $2.47bn.

In FY23, the CAD for Sept was $360bn.

The CAD balance is aligned with the government’s goals of reaching $6 million in CAD deficit balance. In the September Economic Outlook Report by the Ministry of Finance, a gradual increase in worker’s remittances was noted in the months of August and September on a year-on-year basis.

The report added, “Pakistan’s main export markets particularly US, UK, Euro Area and China’s monthly CLI positions indicate an upward trend, indicating positive prospects for export growth in the coming months.”

This CAD reduction comes in amid army-backed currency black market crackdown and the continuous appreciation of the rupee for most of the month in September, with austere measures taken on the Afghan transit trade to curb illicit trading.