Daily Times

Pakistan’s current account posted a surplus of $75 million in August 2024, as compared to a deficit of $152 million in the same month of the previous fiscal year, revealed data released by the State Bank of Pakistan (SBP) on Wednesday.

“The improvement in the current account is due to remittances which clocked in at $2.9 billion, up 40% YoY. In 2MFY25, remittances are up 44% YoY,” said brokerage house Topline Securities.

During the first two months of the current fiscal year (2MFY25), Pakistan’s current account deficit clocked in at $171 million, an amount that is a massive 81% lower than the deficit of $893 million in the same period of the previous fiscal year. In August 2024, the country’s total export of goods and services amounted to $3.108 billion, up nearly 1% as compared to $3.081 billion in the same month of the previous year

Meanwhile, imports clocked in at $5.62 billion during August 2024, a jump of nearly 10% on a yearly basis, according to SBP data.

Worker remittances clocked in at $2.943 billion, an increase of 40% 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 and some restrictions on imports have also aided the policymakers’ objective of a narrower current account deficit.