Pakistan's current account deficit in the first 10 months of the 200910 fiscal year was a provisional $3.060 billion, the State Bank of Pakistan said on Monday.
That compared with a deficit of $8.982 billion in the same period last year, the State Bank said.
"Higher current transfers and receipt of logistical support payments from the US were the main reasons behind the lower current account deficit in the July to April period," said Asif Qureshi, director at Invisor Securities Ltd.
The US embassy said this month it had released $656 million to Pakistan from its so-called coalition support fund for costs incurred last year in fighting Islamist militants, with $188 million transfered in late April 30 and $468 million in May.
The $188 million is reflected in the current account data for April and analysts said the remaining $468 million will be reflected in May's data which should show a further narrowing of the deficit.
The trade deficit for the July to April period of the 200910 (July-June) fiscal year was $12.24 billion, compared with $14.22 billion in the same period last year.
Analysts said they expected the current account deficit to keep narrowing on falling international oil prices.
"We see a similar trend continuing in coming months with the recent decline in international oil prices further helping lessen pressure on the BOP (balance of payments)," Qureshi said.
Oil fell below $70 a barrel on Monday, its lowest in more than three months, extending a loss of nearly 17 percent over the past two weeks on fears over Europe's debts, the weak euro and swollen US oil inventories.
Pakistan recorded a provisional current account deficit of $185 million in April compared with a provisional $40 million in March.
In a quarterly report on the economy released in March, the central bank lowered its forecast for the 200910 current account deficit to 3.2-3.8 percent of gross domestic product, from previous estimates of 3.7-4.7 percent.
An International Monetary Fund (IMF) emergency loan package of $7.6 billion agreed in November 2008 helped avert a balance of payments crisis and shore up reserves.
The IMF increased the loan to $11.3 billion in July and approved the fifth tranche of $1.13 billion on May 14.