Pakistan’s economic landscape has undergone a striking transformation, as indicated by the latest report from the State Bank of Pakistan (SBP) revealing a shift in the country’s current account from deficit to surplus.
In February, the data unveiled a surplus of $12.8 million, a stark contrast to the $30 million deficit recorded in January. Experts attribute this positive shift to a combination of factors, including a reduction in imports and a simultaneous increase in exports.
Furthermore, the surge in remittances has significantly contributed to bolstering the current account balance, further enhancing its improvement. However, despite these encouraging developments, the central bank acknowledges a notable loss of $1 billion in the current account over the past eight months of the current financial year.
In comparison, during the same period in the previous financial year, the country grappled with a deficit of $3.085 billion, underscoring the substantial progress made in addressing economic challenges. This notable improvement reflects the effectiveness of strategic measures implemented to stabilize and strengthen Pakistan’s economic foundation.
In another relevant development, SBP Governor Jameel Ahmed has offered insights into Pakistan’s external debt situation and the government’s proactive strategies to navigate its financial obligations. In discussions with economic experts, Governor Ahmed disclosed plans to reschedule external debt amounting to $2 billion within the next two weeks. Additionally, the government aims to roll over an additional $4 billion of debt, demonstrating a concerted effort to alleviate immediate payment pressures and ensure the effective management of financial commitments.
Governor Ahmed emphasized the government’s challenge in arranging payments totaling $4.8 billion in the remaining three months of the financial year. Furthermore, he provided a comprehensive overview of Pakistan’s total external financial liabilities for fiscal year 2024, which stand at $24.3 billion. Notably, $13.5 billion of external debt has already been repaid during the fiscal year, reflecting ongoing endeavors to honor financial commitments and alleviate the overall debt burden.
