Pakistan records $349mn current account surplus in October 2024

Pakistan’s current account posted a surplus of $349 million in October 2024 compared to a deficit of $287 million in the same month of the previous year, data released on Monday by the State Bank of Pakistan (SBP) showed.

This is the third consecutive month of a current account surplus.

“This surplus is recorded on the back of higher remittances growth of 7% MoM and 24% YoY,” said Mohammed Sohail, CEO Topline Securities in a note.

The surplus was originally reported to be at $119 million in September 2024, but the SBP revised it in the latest data to be at $86 million.

Overall, the figure takes Pakistan’s current account to a surplus of $218 million in the first four months of the current fiscal year (4MFY25), in contrast to a massive deficit of $1.528 billion in the same period of the previous fiscal year.

Breakdown

In October 2024, the country’s total export of goods and services amounted to $3.711 billion, up nearly 12% as compared to $3.327 billion in the same month of the previous year

Meanwhile, imports clocked in at $5.558 billion during October 2024, a jump of nearly 7% on a yearly basis, according to SBP data.

Worker remittances clocked in at $3.052 billion, an increase of 24% 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.

4MFY25

In 4MFY25, the country’s total export of goods and services amounted to $13.11 billion. Whereas, imports clocked in at $22.43 billion during the period, according to SBP data.

The country’s worker remittances clocked in at $11.85 billion, an increase of nearly 35% as compared to $8.79 billion in 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.