Pakistan’s current account deficit has dropped to its lowest level in 13 years, according to a recent report by the State Bank of Pakistan (SBP).
The deficit for the fiscal year 2024 stood at $68 million, a significant decrease of 77% compared to the previous year’s deficit of $3.3 billion.
The SBP attributes this positive shift to several factors, including a rise in remittances and a reduction in import costs. The report highlights that exports of food products and high-valued textiles have contributed to this improvement.
Additionally, enhanced local agricultural production has lowered import payments, further helping to reduce the deficit.
Experts note that strong workers' remittances, which increased by 10.7% annually, have also played a crucial role in this achievement. This progress reflects effective measures to manage the country’s trade balance and bolster its economic stability.
