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Pakistan’s current account posted a surplus of $582 million in December 2024, a massive jump of 109% when compared with the surplus of $279 million in the same month of the previous year, data released on Friday by the State Bank of Pakistan (SBP) showed.

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

Brokerage house Topline Securities stated that Pakistan’s surplus of $582 million for December “came higher than expectations”. It attributed the surplus to “higher remittances and improved trade balance”.

Meanwhile, for November, the surplus was originally reported to be at $729 million, but the SBP revised it in the latest data to be at $684 million.

Overall, the figure takes Pakistan’s current account to a surplus of $1.21 billion in the first half of the current fiscal year (1HFY25), in stark contrast to a massive deficit of $1.397 billion in the same period of the previous fiscal year.

Breakdown

In December 2024, the country’s total export of goods and services amounted to $3.838 billion, up nearly 9% as compared to $3.53 billion in the same month of the previous year

Meanwhile, imports clocked in at $5.781 billion during December 2024, an increase of over 15% on a yearly basis, according to SBP data.

Workers’ remittances clocked in at $3.079 billion, an increase of over 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, which has declined in recent months, and some restrictions on imports have also aided the policymakers’ objective of a narrower current account deficit.

1HFY25

In 1HFY25, the country’s total export of goods and services amounted to $20.28 billion. Whereas, imports clocked in at $33.38 billion during the period, according to SBP data.

The country’s worker remittances clocked in at $17.85 billion, an increase of nearly 33% compared to $13.44 billion in the 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
KU Jan 17, 2025 11:24am
Surreal, an economy with potential of $500 billion but continues to celebrate small gains especially when we have a looming $30 billion repayment in FY25. Yet, no practical plan on economic recovery.
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Abdullah Jan 17, 2025 11:58am
Good job.support new industries in export sector to create more jobs.cut govt expenses.
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Ak Jan 17, 2025 12:57pm
Excellent MashaAllah
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SAd Jan 17, 2025 01:10pm
Shame! This news should have been a top headline today. BR is too obsessed with you guilty certified corrupt person
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Kausar Nisar Jan 17, 2025 02:55pm
Too many positive news about economy nowadays. It is hoped the masses will also experience the fruits of a better economy.
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Khadim Hussain Jan 17, 2025 03:18pm
For industry government should decrease the electricity and gas prices to improve export.
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Khadim Hussain Jan 17, 2025 03:18pm
For industry government should decrease the electricity and gas prices to improve export.
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Safdar Ali Jan 17, 2025 03:37pm
Karza
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Shah Jan 17, 2025 04:57pm
Great job!!! strangle Industry, Stop L/Cs Stop Dividend Repatriation and Then Proudly Show A 'Surplus"
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Az_Iz Jan 17, 2025 06:07pm
Great going.Stand on your own feet and grow the economy.Let's hope the days of seeking aid and brotherly support are over, for good.
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Az_Iz Jan 17, 2025 06:08pm
Let's hope the government will not resort to consumption led growth to create superficial prosperity.
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A Hamid choudhry Jan 17, 2025 06:16pm
Good news for the economy and current government! Hope we are able to train more people in IT and other industries.Give incentives to overseas Pakistanis to invest in Industries in Pakistan.
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Usman Jan 17, 2025 09:12pm
Whenever pmln comes to power they stabalise the economy and than they are thrown out.as they have stabalised time is up for them.
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Aam Aadmi Jan 18, 2025 10:07am
Any surplus achieved, if really achieved, by sacrificing the people's basic needs is neither desirable nor worthy of celebration. Please research it deeply before presenting government's viewpoint.
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Saeed Jan 18, 2025 07:35pm
@Aam Aadmi, No basic need is imported in Pakistan.
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