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
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.
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