Pakistan’s current account recorded a deficit of $269 million in January 2024, as compared to a $404 million month-on-month (MoM) surplus in December 2023, according to the latest data released by the State Bank of Pakistan (SBP) on Monday.
The deficit emerged due to a slight decline in exports by over 4% to $3.37 billion from December’s $3.526 billion, and an increase in imports by 11% to $5.51 billion, compared to the same period last year.
Despite the dip in exports, remittances in January saw a marginal increase to $2.397 billion from $2.382 billion in December.
On the flip side, the country’s current account position, with a deficit reduction to $1.093 billion in the first seven months (July-January) of FY24, is down by 71% from the same period of the previous fiscal year.
This improvement aligns with the central bank’s positive outlook on the external account, highlighted by SBP Governor Jameel Ahmad, noting the narrowing deficit and stabilized foreign exchange reserves despite substantial payments.
This financial trend indicates critical insights into Pakistan’s economic health, particularly its dependence on imports and the impact on its exchange rate and foreign exchange reserves.
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