Pakistan’s current account posted a deficit of $269 million in January 2024, in stark contrast to a surplus of $404 million recorded in December 2023, revealed data released by the State Bank of Pakistan (SBP) on Monday.

The deficit comes amid a minor decrease in the country’s exports, but a significant increase in imports.

As per the central bank data, the country’s exports (goods and services) clocked in at $3.37 billion in January 2024 against $3.526 billion in December 2023, a drop of over 4%.

Meanwhile, the country’s remittances stood at $2.397 billion in January 2024, in comparison to $2.382 billion in December 2023, an increase of 1%.

Pakistan’s current account posts significant surplus of $397mn in December

On the other hand, total imports were up by 11% to $5.51 billion in January 2024 against $4.96 billion in December.

Pakistan posted a current account deficit of $167 million in January 2023.

July-December

According to the SBP, on a cumulative basis, Pakistan posted a current account deficit of $1.093 billion in July-January of FY24 as compared to a deficit of $3.796 billion during the same month of last fiscal year (FY23), a massive decline of 71%.

The central bank, in its latest Monetary Policy Committee (MPC) meeting held on January 29, noted that the country’s external account position has improved.

SBP Governor Jameel Ahmad said, back then, that despite payments of $6.2 billion, foreign exchange reserves have improved.

“Our current account deficit has also narrowed.”

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.