Karachi, December 17, 2024: Pakistan recorded a current account surplus of $729 million in November 2024, a significant improvement compared to the $148 million deficit in the same month last year, according to data released by the State Bank of Pakistan (SBP). This marks the fourth consecutive month of a current account surplus and the second-highest surplus since July 2013, as noted by brokerage firm Arif Habib Limited (AHL).
The surplus was driven by a 4% year-on-year (YoY) increase in exports, which totalled $3.5 billion, alongside a 29% rise in workers’ remittances to $2.915 billion. At the same time, imports declined by 7% YoY to $4.964 billion, contributing to the improved balance. Notably, the surplus for October 2024 was revised from $349 million to $346 million in the latest SBP report.
In the first five months of the fiscal year (5MFY25), the current account registered a cumulative surplus of $944 million, a remarkable turnaround from the $1.676 billion deficit recorded in the same period last year. During this period, total exports of goods and services reached $16.56 billion, reflecting a 4% YoY increase, while imports fell by 7% YoY to $27.39 billion. Worker remittances also saw a robust 34% YoY increase, amounting to $14.77 billion compared to $11.05 billion in the previous year.
The improvement in the current account reflects a combination of factors, including subdued economic growth, high inflation, and a reduction in interest rates, which have helped manage the country’s import bill. Export growth and a surge in remittance inflows further contributed to this positive trend.
As a key economic indicator for Pakistan, the current account plays a vital role in the country’s stability. A surplus helps strengthen foreign exchange reserves and stabilize the exchange rate, while a deficit puts pressure on the currency and drains reserves.
