Current account surplus record of $349 million in October 2024

Current account surplus record of $349 million in October 2024

Pakistan’s current account was in surplus of $349 million in October this year. According to data released by the State Bank of Pakistan (SBP), Pakistan’s current account was in surplus of $349 million in October, while a deficit of $287 million was recorded in the same period of the previous fiscal year. This is the third consecutive month of current account surplus. Muhammad Sohail, CEO of Topline Securities, said in a note that this surplus was recorded due to a 7 percent increase in remittances and a 24 percent annual increase. In September 2024, the surplus was reported to be $119 million, but the State Bank revised it to $86 million in the latest data. Overall, this figure has brought Pakistan’s current account to a surplus of $218 million in the first four months of the current fiscal year While a large deficit of $1.528 billion was recorded in the same period of the previous fiscal year.

Breakdown

The country’s total exports of goods and services in October 2024 stood at $3.711 billion, up about 12 percent from $3.327 billion in the same month last year. According to the State Bank, imports during October 2024 stood at $5.558 billion, an increase of 7 percent year-on-year. Workers’ remittances stood at $3.052 billion, up 24 percent from the previous year. Rising inflation along with low economic growth has helped reduce Pakistan’s current account deficit and an increase in exports has also helped in this regard. High interest rates and some restrictions on imports have also helped policymakers in their goal of reducing the current account deficit.

July-October of the current fiscal year

The total volume of exports of goods and services in the first 4 months of fiscal year 2025 was $13.11 billion. According to the State Bank, imports during this period were $22.43 billion. Workers’ remittances were $11.85 billion, about 35% higher than $8.79 billion in the same period last year. The current account is a key figure for Pakistan, which relies heavily on imports to run its economy. A widening deficit puts pressure on the exchange rate and reduces the government’s foreign exchange reserves, while in the opposite situation, these effects are reversed.