The current account deficit (CAD) reduced by 36 per cent to $809 million in July FY24 compared to $1.261 billion in the same month of the previous fiscal year, State Bank of Pakistan (SBP) reported on Friday. However, July’s current account was in deficit for the first time after four months of surpluses. June saw a surplus of $504m. The FY23 achieved a significant success in substantially reducing the CAD to $2.387bn (revised) from $17.481b in FY22. The huge CAD in FY23 pushed the country towards a sovereign default. The situation worsened due to low dollar inflows, while donor agencies and friendly countries remained unmoved until the IMF approved a $3bn Standby Arrangement facility. Inflows from the IMF, Saudi Arabia, and the United Arab Emirates collectively boosted the SBP’s reserves by $8.7bn. “Due to this deviation from focusing on traditional inflows, previous government failed to benefit from the sharp decline in the current account deficit,” said a senior banker. He said that had the losses been averted, the country could have witnessed a significant current account surplus. Monthly deficit of $809m comes after four months of surplus During the last eight months of FY23, the government tried to secure a $1bn stuck-up loan from the IMF, coinciding with falling remittances and export proceeds.