Pakistan’s current account saw a surplus of $119 million in September 2024, a notable improvement from the $218 million deficit in the same month last year, according to data from the State Bank of Pakistan (SBP).
This marks second straight month of current account surplus, and it’s the biggest since March 2024.
The surplus for August 2024, which was initially reported around $75 million, was revised down to $29 million in the latest data.
In the first three months of the current fiscal year (3MFY25), the overall current account deficit stands at $98 million. This marks a significant 92 per cent reduction from the $1.241 billion deficit recorded in the same period in 2023.
Breakdown of September 2024
| Trade (September 2024) | Value (Sept 2024) | Value (Sept 2023) | Improvement |
| Exports of goods and services | $3.302 billion | $2.999 billion | +10% |
| Imports of goods and services | $5.574 billion | $4.845 billion | +15% |
| Worker remittances | $2.849 billion | $2.209 billion | +29% |
Exports: Pakistan’s total exports of goods and services reached $3.302 billion, a rise of over 10 per cent compared to $2.999 billion in September 2023.
Imports: Imports surged nearly 15 per cent year-on-year, reaching $5.574 billion in September 2024.
Worker remittances: Remittances amounted to $2.849 billion marking a 29 per cent increase compared to last year.
Reasons behind the improvement
The reduction in the current account deficit is partly due to not so impressive economic growth and high inflation, which have curbed demand for imports. The increase in exports, higher interest rates, and some import restrictions have supported the government’s efforts to narrow the deficit.
3MFY25 performance
From July to September 2024, exports totalled $9.4 billion, while imports reached $16.83 billion. Worker remittances during the same period were recorder at $8.79 billion, showing almost 39 per cent jump from the same period in 2023.
Why it matters?
The current account is a critical indicator for Pakistan’s economy. this is due to its reliance on imports. A widening deficit can weaken the Pakistani currency and deplete foreign exchange reserves, while a surplus helps stabilise both.
