Pakistan’s Current Account Surplus Skyrockets to $582 Million in December 2024

In December 2024, Pakistan’s current account recorded an impressive surplus of $582 million, marking a staggering 109% increase from the surplus of $279 million during the same month last year. This data, released by the State Bank of Pakistan (SBP), highlights a significant positive shift for the nation.

This marks the fifth consecutive month that Pakistan has enjoyed a current account surplus. According to Topline Securities, a brokerage firm, this surplus exceeded expectations and was primarily driven by higher remittances and an enhanced trade balance.

For November, the initially reported surplus was $729 million, which has since been revised to $684 million by the SBP.

In total, Pakistan has achieved a current account surplus of $1.21 billion in the first half of the current fiscal year, a remarkable turnaround from a deficit of $1.397 billion during the same period last year.

Key Figures:

  • In December 2024, Pakistan’s total exports of goods and services reached $3.838 billion, reflecting a nearly 9% increase from $3.53 billion a year earlier.
  • Imports rose to $5.781 billion during the same month, with an increase of over 15% on a yearly basis.
  • Worker remittances surged to $3.079 billion, reflecting a growth of over 29% compared to the previous year.

Despite facing challenges such as low economic growth and high inflation, these factors have contributed to reducing Pakistan’s current account deficit. The rise in exports, along with a recent decrease in interest rates and certain import restrictions, have also supported efforts to achieve a tighter current account balance.

Pl subscribe to the YouTube channel of republicpolicy.com for qiuality podcasts:

In the first half of the fiscal year, total exports stood at $20.28 billion, while imports reached $33.38 billion, according to SBP data. Worker remittances for this period amounted to $17.85 billion, a notable increase of nearly 33% from $13.44 billion in the previous year.

The current account balance is crucial for Pakistan, a country that relies significantly on imports. A widening deficit can exert pressure on the exchange rate and deplete foreign exchange reserves, whereas a surplus can provide much-needed stability.

Leave a Comment

Your email address will not be published. Required fields are marked *

Latest Videos