In October 2023, Pakistan experienced a noteworthy surplus in its current account, signaling a positive shift attributed to a notable surge in exports and remittances, coupled with a slight decrease in imports. The current account deficit for the month was reported at $74 million, a significant improvement from the $184 million deficit recorded in October 2023.
Central bank data reveals a robust performance in the country’s exports, reaching $3.364 billion in November 2023, marking a substantial 12% increase compared to the same period in 2022. Simultaneously, remittances rose to $2.25 billion, reflecting a marginal 4% uptick from November of the previous year.
Contrastingly, total imports registered a modest decline of almost 6%, amounting to $5.29 billion in November 2023, down from $5.01 billion in the corresponding period the previous year.
The State Bank of Pakistan (SBP) reported a significant reduction in the current account deficit for July-November of fiscal year 2024, standing at $1.16 billion.
This represents a remarkable 64% decrease from the .3 billion deficit recorded during the same period in the preceding fiscal year (FY23). The latest data from the SBP’s Monetary Policy Committee meeting on December 12 emphasized a substantial year-on-year improvement in the current account balance, with the deficit narrowing by 65.9% to $1.1 billion during Jul-Oct FY24.
For Pakistan, a country heavily reliant on imports to sustain its economy, the current account holds critical importance. The reduction in the deficit alleviates pressure on the exchange rate and preserves official foreign exchange reserves, which currently stand at slightly over billion according to the latest available data.
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