Pakistan achieved its highest current account surplus in almost a decade, recording $729 million in November 2024, a significant improvement from the $346 million surplus in October and a stark contrast to the $148 million deficit in November 2023. This surplus is largely due to reductions in the trade and services deficits, as well as lower interest and dividend payments.
This marks the fourth consecutive month of surplus, with Pakistan’s current account surplus for the first five months of fiscal year 2025 reaching $944 million, compared to a deficit of $1.67 billion in the same period last year. The surplus in November surged by 111% from the previous month, driven by a 14% reduction in the trade deficit and a 43% drop in the services deficit.
Goods imports fell by 10% to $4.136 billion, while services imports decreased by 13%. Remittances declined by 5% from October but saw a 29% year-on-year increase, reaching $2.9 billion in November. Additionally, personal transfers surged by 34% in the first five months of the fiscal year.
Pakistan’s positive economic performance is also reflected in the State Bank of Pakistan’s (SBP) actions, including a 200 basis point interest rate cut, the fifth reduction this year. SBP Governor Jameel Ahmad has forecasted a substantial surplus for the current account in FY25 and anticipates foreign exchange reserves will exceed $13 billion by June 2025.
Prime Minister Shehbaz Sharif expressed his satisfaction with the record surplus, highlighting its positive impact on investor confidence and the broader economy. He also noted the declining inflation rate and the reduced interest rate as key factors in promoting investment and economic growth.
