Current Account Surplus
Pakistan’s economic landscape saw a notable upturn in March 2024, with the State Bank of Pakistan (SBP) reporting a substantial current account surplus of $619 million.
This impressive figure marks the highest monthly surplus since February 2015, signaling a positive turn for the country’s financial health.
The surge in surplus can be attributed largely to a remarkable increase in workers’ remittances, a key contributor to Pakistan’s economy.
Compared to the previous month’s surplus of $98 million, March’s surplus represents a significant leap. Moreover, in March 2023, the surplus stood at $537 million, indicating a substantial year-on-year improvement.
On a cumulative basis, the current account deficit for the first nine months of the fiscal year 2024 amounted to $508 million.
This reflects an impressive 87.5% year-on-year improvement compared to the deficit of $4.05 billion recorded in the same period of the previous fiscal year.
The rise in total exports by 4.6% year-on-year, reaching $3.23 billion, contributed to the positive momentum.
Similarly, total imports saw an increase of 7.9% year-on-year, totaling $5.25 billion. However, while the trade deficit widened both on a yearly and monthly basis, the overall trend remains positive.
Breaking down the data, the trade deficit in goods reached $1.93 billion, up 11.2% year-on-year, driven by increases in both exports and imports.
Additionally, the trade deficit in services expanded to $89 million, marking a significant year-on-year increase.
The standout performer, however, was workers’ remittances, which soared by 16.4% year-on-year to $2.95 billion in March. On a monthly basis, remittances surged by 31.3%, reaching $2.25 billion.
Cumulatively for the first nine months of the fiscal year, workers’ remittances totaled $21.04 billion, a slight increase from the previous year.
Overall, Pakistan’s economic indicators paint a picture of resilience and growth, driven by robust remittances and improving trade balances.
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