Pakistan records massive $729mn current account surplus in November 2024

Pakistan’s current account posted a surplus of $729 million in November 2024 compared to a deficit of $148 million in the same month of the previous year, data released on Tuesday by the State Bank of Pakistan (SBP) showed.

This is the fourth consecutive month of a current account surplus.

“This also the second-highest current account surplus based on available data since July 2013,” said brokerage house Arif Habib Limited (AHL) in a note.

“The surplus was driven by a 4% YoY increase in total exports, which stood at $3.5 billion, alongside a 29% YoY rise in remittances. Additionally, total imports declined by 7% YoY during the month,” added the brokerage house.

Meanwhile, for October, the surplus was originally reported to be at $349 million, but the SBP revised it in the latest data to be at $346 million.

Overall, the figure takes Pakistan’s current account to a surplus of $944 million in the first five months of the current fiscal year (5MFY25), in contrast to a massive deficit of $1.676 billion in the same period of the previous fiscal year.

Breakdown

In November 2024, the country’s total export of goods and services amounted to $3.451 billion, up nearly 4% as compared to $3.327 billion in the same month of the previous year

Meanwhile, imports clocked in at $4.964 billion during November 2024, a fall of nearly 7% on a yearly basis, according to SBP data.

Workers’ remittances clocked in at $2.915 billion, an increase of 29% as compared to the previous year.

Low economic growth along with high inflation have helped curtail Pakistan’s current account deficit with an increase in exports also helping the cause. A high interest rate, which has declined in recent months, and some restrictions on imports have also aided the policymakers’ objective of a narrower current account deficit.

5MFY25

In 5MFY25, the country’s total export of goods and services amounted to $16.56 billion. Whereas, imports clocked in at $27.39 billion during the period, according to SBP data.

The country’s worker remittances clocked in at $14.77 billion, an increase of nearly 34% as compared to $11.05 billion in the same period last year.

The current account is a key figure for cash-strapped Pakistan which relies heavily on imports to run its economy.

A widening deficit puts pressure on the exchange rate and drains official foreign exchange reserves, while the situation reverses vice versa.