The current account deficit shrank to $0.7 billion in August compared to $1.2 billion in July 2022, largely reflecting a continued moderation in overall imports, a data released by State Bank of Pakistan (SBP) said on Thursday. Cumulatively, in Jul-Aug of current fiscal year (FY23), Current Account Deficit (CAD) declined by $0.5 billion to $1.9 billion compared to the same period last year mainly due to increase in exports by $0.5 billion and contraction in imports by $0.2 billion. According to the data, the exports of goods rose from US$ 2.34 billion in August 2021 to $2.81 billion in same month of current fiscal year. The imports of goods decreased from $5.96 billion to $5.75 billion in the month under review. The overall trade deficit also shrank to $2.94 billion as compared to the deficit of $3.63 billion in August 2021. Similarly the trade deficit in services, also shrank to $361 million in August as compared to the deficit of $388 million in same month of previous year. Deficit of primary income declined to $168 million in August 2022 as compared to $377 million in same month of the previous year. The combined deficit of goods, services, and primary income also declined to $3.3 billion in the corresponding month while during same month of last year, the deficit was recorded at $4.016 billion. Workers’ remittances increased to $2.724 billion against $2.68 billion in August 2021. A noted entrepreneur and economic expert Thursday hailed the recent 19 per cent reduction in Pakistan’s current account deficit terming it a good omen for the national economy but stressed on keeping the pattern sustainable to extract maximum benefits. Former Deputy Governor Rotary Club, Malik Rab Nawaz attributed the positive development to reduction in imports and incremental betterment in exports trend. He told APP that importers were not inclined to import due to rising price of dollar while import of big vehicles also recorded reduction due to rise in import duty. He said that Pakistan’s exports were also not up to the desired level but overall situation was better on the national economic front. He said that prices of edible oil had also reduced in the international market but added that the country still had stock sufficient for next two months so there would be no need to import edible oil.