Pakistan

Pakistan’s current account posts surplus of $491mn in April 2024

  • Overall, during 10 months of ongoing fiscal year, current account balance stands at deficit of $202mn
Published May 17, 2024

Pakistan’s current account posted a provisional surplus of $491 million in April 2024 compared to a revised surplus of $434 million in March 2024, revealed data released by the State Bank of Pakistan (SBP) on Friday.

Overall, during the ten months of the ongoing fiscal year, the current account balance stood at a deficit of $202 million, massively lower than $3.92 billion in the same period of the previous year.

“This surplus came higher than our expectations as the SBP reported much lower trade deficit than the Pakistan Bureau of Statistics (PBS) i.e. 72% of PBS, compared to 10MFY24 ratio of 90%,” said brokerage house Topline Securities in a note.

Low economic growth along with high inflation have helped curtail Pakistan’s current account deficit with an increase in exports also helping the cause. A high interest rate and some restrictions on imports have also aided the policymakers’ objective of a narrower current account deficit.

During April 2024, Pakistan’s exports of goods and services stood at $3.28 billion, while imports clocked in at $5.28 billion.

Meanwhile, remittances in April clocked in at $2.81 billion.

In 10MFY24, the country’s total export of goods and services amounted to over $32.1 billion. Whereas, imports clocked in at $51.7 billion during the period, according to SBP data.

Whereas, the country’s worker remittances clocked in at $23.85 billion, as increase of 4% as compared to same period last year.

The current account is a key figure for cash-strapped Pakistan which relies heavily on imports to run its economy. A widening deficit puts pressure on the exchange rate and drains official foreign exchange reserves.

Pakistan is currently engaged in talks with the International Monetary Fund (IMF) over a new longer and longer bailout with the lender as it looks to shore up its foreign exchange reserves, which currently stand at $14.62 billion.

Comments

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SAd May 17, 2024 05:02pm
Exceptional performance by Shahbaz led government. Not only did they narrowed down current account deficit but also turned it to current account surplus at the end of year. Now inflation coming down
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Rebirth May 17, 2024 05:06pm
If the current account has clocked in a surplus, why is our Finance Minister clocking in at the IMF and fulfilling his duties and responsibilities as a responsible employee of a foreign institution?
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Az_Iz May 17, 2024 06:21pm
@SAd, this is the cumulative result of the past 10 months. It also includes IMF loans. Don't give too much credit to the current govt.
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Muzaffar May 17, 2024 06:26pm
It is good to have a trade surplus. But little rejoicing considering the statistics. We had $2 Billion net deficit which was offset by remittances from Pakistanis living and working abroad.
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Taimoor May 17, 2024 06:27pm
We aren't buying, so we aren't spending $. But does it mean, we are growing, getting rich?
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Muzaffar May 17, 2024 06:41pm
Trade Surplus is generally a good indicator. However statistics reveal a net trade deficit of$2B.Luckily this deficit been reduced due to$2.281B remittances from the diaspora.
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Salauddin May 17, 2024 08:18pm
@SAd, send this data to the liar, psychopath, sadistic and egoistic maniac in jail. Let him suffer some heartburn.
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Az_Iz May 17, 2024 08:21pm
@SAd, this is purely Punjab speed.
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Az_Iz May 17, 2024 08:40pm
The focus should be less on consumption and more on development.Education, health, infrastructure,dams,railway, public transportation etc.The country is fully capable of doing it,and can progress.
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Az_Iz May 17, 2024 08:48pm
The country used to run huge CAD,&then go around beg,to pay for it. Now,with little trying,it is in a much better shape.It should now,focus on building dams,infrastructure etc,and reduce consumption.
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Az_Iz May 17, 2024 08:51pm
Increase petroleum levy to generate another Rs 600 billion.Use that money to improve more efficient public transportation and railways,build dams,improve education and health.Reduce consumption.
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Usman May 17, 2024 11:31pm
Shehbaz shareef has calmed down the losses and he has started to rebuild and trying to create surpluses.these are good signs .we need to stop begging.
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M M Alam May 18, 2024 12:24am
@Taimoor, no
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M M Alam May 18, 2024 12:25am
@Muzaffar , 2.81
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m m alam May 18, 2024 05:15am
There were surplus from April to July 2023 followed by deficits from August to December 2023. So we will have deficits in 2024 as well. Take it easy...lol. We have don't have FX reserve.
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m m alam May 18, 2024 09:12am
@Usman, look at the chart. We had surplus in April 2023 too and then deficit from August 2023 onwards. It's seasonal. Our reserves are borrowing. LSM is down due to import being constrained.
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m m alam May 18, 2024 02:59pm
@m m alam, we don't have FX reserve*
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Ch May 19, 2024 07:41am
@Rebirth, pakistan highly debt in foreign countries that is reason
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