KARACHI: The country’s current account balance posted a surplus of $218 million in the first four months of FY25, driven by robust foreign inflows.
The country’s current account is performing well and posting a surplus for the past three months driven largely by a substantial increase in workers’ remittances.
Cumulatively, home remittances from expatriates surged by 36 percent to $ 11.8 billion during Jul-Oct FY25. Pakistan also received over $3 billion home remittances in October 2024, the highest monthly inflow so far in the current fiscal year.
According to State Bank of Pakistan (SBP), the country’s current account balance moved to a surplus of $218 million in July-Oct of FY25 from a deficit of $1.528 billion in July-Oct of FY24.
The current account has performed well despite that the trade deficit has widened by 19 percent in the four months of this fiscal year.
Goods trade posted a deficit of $8.3 billion in July-Oct of FY25 up from $7 billion is corresponding period of last fiscal year. Over the Jul-Oct period, exports increased by 8.7 percent, moving from $9.7 billion to $10.5 billion.
The country posted surplus for 3rd consecutive month in Oct 2024. The country is witnessing current account surplus since August 2024.
Month on Month basis, the current account balance showed significant improvement, shifting from a deficit of $287 million in Oct 2023 to a surplus of $349 million in Oct 2024, marking a significant YoY turnaround.
Current account surplus in Oct 2024 is also higher than surplus of $86 million in Sep 2024.
The trade deficit in goods narrowed 4.7 percent to $1.6 billion in Oct 2024, down from $1.7 billion in Oct 2023.
Exports of goods rose by 11.2 percent YoY, reaching $3 billion in Oct 2024 compared to $2.7 billion in Oct 2023. On the contrary, imports of goods increased by 5 percent to reaching at $4.6 billion in Oct 2024 from $4.4 billion in Oct 2023.
This growth in exports reflects stronger demand in international markets, particularly for textile products, which recorded $5.8 billion up 5 percent YoY. The USA was the top export destination for Pakistan in Oct 2024, with $576 million worth of exports, followed by China, with $254 million in exports.
Copyright Business Recorder, 2024
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