Pakistan’s current account posted a surplus of $729 million in November 2024, a significant improvement compared to a deficit of $148 million in the same month last year, according to data released by the State Bank of Pakistan (SBP) on Tuesday.
This marks the fourth consecutive month of a current account surplus. According to a note by Arif Habib Limited (AHL), this is the second-highest current account surplus recorded since July 2013, based on available data.
The surplus was primarily driven by a 4% year-on-year (YoY) increase in exports, which reached $3.5 billion, and a 29% YoY rise in remittances. Additionally, imports declined by 7% YoY during the same period, contributing to the positive balance, the brokerage firm noted.
The SBP also revised the October 2024 surplus figure from $349 million to $346 million in its latest data release.
Current Account Surplus in 5MFY25
For the first five months of the current fiscal year (5MFY25), Pakistan’s current account surplus reached $944 million, a stark contrast to the $1.676 billion deficit recorded during the same period last year.
November 2024 Breakdown
In November 2024, Pakistan’s total exports of goods and services amounted to $3.451 billion, reflecting a 4% increase compared to $3.327 billion in November 2023. Meanwhile, imports stood at $4.964 billion, showing a 7% decline on a yearly basis, according to SBP data.
Worker remittances also saw a significant boost, reaching $2.915 billion, a 29% increase compared to the same month last year.
Factors Behind the Surplus
The improvement in the current account balance can be attributed to low economic growth and high inflation, which have helped reduce the current account deficit. Additionally, an increase in exports, a high interest rate environment (which has eased in recent months), and import restrictions have supported the government’s efforts to narrow the deficit.
5MFY25 Performance
During the first five months of FY25, Pakistan’s total exports of goods and services amounted to $16.56 billion, while imports were recorded at $27.39 billion, according to SBP data. Worker remittances during this period totaled $14.77 billion, reflecting a 34% increase compared to $11.05 billion in the same period last year.
