5 days Ago By News Desk
Current account surplus sustained for fourth consecutive month due to higher remittances and improved trade balance Pakistan achieved a significant economic milestone in November 2024, recording its highest monthly current account surplus of $729 million in the last 10 years. This marks the fourth consecutive month of surplus, signalling a steady improvement in the country’s external account position. The notable surplus has been attributed primarily to higher inflows of workers’ remittances and an improved trade balance, which helped strengthen the country’s overall economic outlook.
Cumulatively, during the first five months of the current fiscal year (5MFY25), the current account posted a surplus of $944 million. This is a stark turnaround compared to the $1.676 billion deficit recorded in the same period last fiscal year (5MFY24).
The shift reflects a growing resilience in Pakistan’s external sector, aided by favourable trends in remittance inflows and better control over the trade deficit. The improvement in the current account can also be traced to the policies implemented by the government and the State Bank of Pakistan (SBP) aimed at stabilising the external sector, including exchange rate stability, enhanced foreign exchange reserves, and incentivised remittance channels. A surplus not only reduces reliance on external borrowing but also helps improve the country’s foreign exchange reserves, supporting the exchange rate and reducing inflationary pressures.
Economic experts view this development as an encouraging sign, indicating that Pakistan’s economy is on the path to stabilisation. However, they caution that sustaining the current account surplus will require continued focus on export growth, remittance inflows, and prudent import management amid global economic uncertainties. Save my name, email, and website in this browser for the next time I comment.
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