KARACHI: The country’s Current Account has presented an improved picture and recorded a surplus of $128 million in February 2024 as against a deficit of $303 million in January 2024.

According to State Bank of Pakistan (SBP), cumulative current account deficit of this fiscal year also reached below one billion dollar due to a surplus in February 2024.

Overall, the current account deficit declined by 74percent during the first eight months of this fiscal year (FY24). Current account posted a $999 million deficit in July-Feb or FY24 compared to $3.846 billion deficit is same period of last fiscal year (FY23), showing a decline of $ 2.847 billion.

Jul-Oct C/A deficit dips sharply

The current account statistics of Feb 24 is also better than Feb 2023, in which deficit was $ 50 million.

Analysts said that improvement in current account is largely owes to narrowing of the trade deficit, mainly driven by an increase in exports and a decline in imports.

The surplus in current account will also support the depleting foreign exchange reserves of the country, they added.

According to SBP, the export earnings are growing due to higher food exports, whereas import payments have remained subdued due to better domestic agriculture output, moderate domestic demand and supportive global commodity prices.

The Monetary Policy Committee of SBP in its meeting held on Monday has also assessed that the current account deficit is likely to remain closer to the lower bound of 0.5 to 1.5 percent of GDP forecast range for FY24.

Copyright Business Recorder, 2024