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Pakistan records $119mn current account surplus in September 2024

  • Development comes on back of massive increase in remittance inflows
  • This is the second successive month in which Pakistan's current account has posted surplus
Published October 21, 2024

Pakistan’s current account posted a surplus of $119 million in September 2024 compared to a deficit of $218 million in the same month of the previous fiscal year, data released on Monday by the State Bank of Pakistan (SBP) showed.

This is second successive month of a current account surplus, and also the highest in magnitude since March, 2024.

The current account surplus was originally reported to be at $75 million in August 2024, but the SBP revised it in the latest data to be at $29 million.

Overall, the figure takes Pakistan’s current account deficit in the first three months of the current fiscal year (3MFY25) to a mere $98 million, an amount that is a massive 92% lower than the deficit of $1.241 billion in the same period of the previous fiscal year.

Breakdown

In September 2024, the country’s total export of goods and services amounted to $3.302 billion, up over 10% as compared to $2.999 billion in the same month of the previous year

Meanwhile, imports clocked in at $5.574 billion during September 2024, a jump of nearly 15% on a yearly basis, according to SBP data.

Worker remittances clocked in at $2.849 billion, an increase of 29% as compared to the previous year.

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.

3MFY25

In 3MFY25, the country’s total export of goods and services amounted to $9.4 billion. Whereas, imports clocked in at $16.83 billion during the period, according to SBP data.

The country’s worker remittances clocked in at $8.79 billion, an increase of nearly 39% 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, while the situation reverses vice versa.

Comments

200 characters
Az_Iz Oct 21, 2024 05:01pm
Great going.
thumb_up Recommended (0) reply Reply
SAd Oct 21, 2024 06:55pm
We expected it to better number but still acceptable
thumb_up Recommended (0) reply Reply
Huma Ashraf Oct 21, 2024 07:39pm
For Studies
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sohail Oct 21, 2024 08:17pm
Exports + services being compared with only imports is an unbalanced view.
thumb_up Recommended (0) reply Reply
MZI Oct 21, 2024 10:27pm
The exchange rate stability has found its legs with much lower inflation & an account surplus. This bodes well for Pakistan's economy. Agents of instability & chaos will not like it.
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Atapav1 Oct 22, 2024 08:08pm
@MZI, Like your father
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Najeeb Oct 22, 2024 09:13pm
Give the government back to rightful party PTI, you can see the real development.
thumb_up Recommended (0) reply Reply
EA Oct 29, 2024 04:34pm
It became controversial after SBP rectified earlier reported figure of surplus $75B to $29B. BR team should have highlighted the rectification part before moving forward.
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