March sees highest monthly current account surplus of $619mn in nine years

Pakistan’s current account witnessed a surplus of $619 million in March 2024, the highest surplus in nine years. 

According to data released by the State Bank of Pakistan (SBP) Monday, the current account balance in the first nine months (July to March) of the ongoing fiscal year 2023-24 has improved significantly; as a deficit of $0.5 billion was recorded during the period as compared to the deficit of $4.1 billion during the corresponding period of last year.

“Pakistan recorded a current account surplus of $619 million in March 2024 compared to $537 million last year and $98 million in February 2024,” Topline Securities said in its report.

“This is the highest monthly surplus after nine years. We believe significant monthly surplus is due to higher remittances amid Eid inflows.”

According to SBP data, the merchandise trade deficit during July-March (2023-24) was recorded at $15.75 billion as compared to the deficit of $21,079 billion in the same period of the last fiscal year. 

Likewise, the services trade deficit was recorded at $1.655 billion during FY2023-24 compared to the deficit of $374 million during the corresponding period of last year.

The overall trade deficit in goods and services was recorded at $17.412 billion during the current fiscal year compared to the deficit of $21.453 million during last year.

Meanwhile, the balance on primary income stood at negative $5.561 billion against $4.0 billion last year, according to the SBP data.