Pakistan’s current account, after four consecutive months of deficits, achieved a surplus of $9 million in November 2023, according to data released by the State Bank of Pakistan (SBP) on Monday.
This marks a significant turnaround from the $157 million deficit recorded in the same month of the previous year.
This surplus, the first since June 2023, is notably lower in volume compared to the $520 million surplus at that time. Experts attribute the recent surplus to a notable increase in the country’s exports and remittances, coupled with a slight decline in imports.
In October 2023, Pakistan had posted a current account deficit of $184 million.
According to SBP data, the country’s exports (goods and services) saw an impressive rise to $3.364 billion in November 2023, reflecting a 12 percent increase from $2.999 billion in November 2022.
Remittances also displayed a marginal increase of 4 percent, reaching $2.25 billion in November 2023 compared to $2.17 billion in the same month last year.
Conversely, total imports decreased by nearly 6 percent, totaling $5.29 billion in November 2023 compared to $5.01 billion in the same period last year.
The SBP reported a current account deficit of $1.16 billion in July-November of FY24, a significant improvement from the $3.3 billion deficit during the same period in the previous fiscal year (FY23), representing a decline of over $2 billion or 64 percent.
In its latest Monetary Policy Committee (MPC) meeting on December 12, the SBP highlighted a substantial improvement in the current account balance, with the deficit narrowing by 65.9 percent year-on-year to $1.1 billion during Jul-Oct FY24.
The current account remains a crucial metric for Pakistan, heavily reliant on imports to sustain its economy. A shrinking deficit eases pressure on the exchange rate and helps maintain official foreign exchange reserves, which currently stand at just over $7 billion, according to the latest data.
