Pakistan registers massive $582mn current account surplus in December 2024
- This is fifth consecutive month of current account surplus
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.
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