Pakistan recorded a current account surplus of $119 million in September 2024, a significant turnaround from a deficit of $218 million during the same month last year, as reported by the State Bank of Pakistan (SBP) on Monday. This marks the second month in a row of surplus and the highest figure since March 2024.
In August, the surplus was initially reported at $75 million but has now been revised down to $29 million.
For the first three months of the current fiscal year, Pakistan’s current account deficit stands at just $98 million, a remarkable 92% decrease compared to a deficit of $1.241 billion in the same timeframe last year.
In September 2024, exports of goods and services reached $3.302 billion, a rise of over 10% from $2.999 billion in September 2023. Meanwhile, imports surged to $5.574 billion, an increase of nearly 15% compared to the previous year.
Worker remittances also saw a notable boost, totaling $2.849 billion, which is a 29% increase from last year.
Factors such as low economic growth, high inflation, and restrictions on imports have contributed to narrowing Pakistan’s current account deficit. Higher export levels and high-interest rates have also played a role in this improvement.
During the same three-month period, total exports amounted to $9.4 billion, while imports totaled $16.83 billion. Worker remittances reached $8.79 billion, showing a nearly 39% increase from the same period last year.
The current account balance is critical for Pakistan, which heavily relies on imports. A growing deficit can exert pressure on the exchange rate and deplete foreign reserves, while a surplus has the opposite effect.
