Pakistan records current account surplus of $128 million amid import decline

WEB DESK: The State Bank of Pakistan (SBP) has announced that Pakistan has recorded a current account surplus of $128 million, primarily attributed to a significant decrease in imports.

This news comes as the latest data reveals a notable shift in the country’s economic landscape.

In comparison to the previous month’s current account deficit of $303 million and February 2023’s deficit of $50 million, this surplus marks a positive turn.

Total exports experienced a slight decline of 5.80 per cent month-over-month (MoM), yet showed a robust year-over-year (YoY) increase of 14.09 per cent, amounting to $3.18 billion.

Conversely, total imports witnessed a notable decrease of 9.11 per cent MoM, totaling $5.06 billion, compared to January’s imports of $5.57 billion.

However, there was a substantial 11.80 per cent YoY rise in imports compared to February of the previous year, which stood at $4.53 billion.

On a cumulative basis, the current account deficit for the first eight months of the fiscal year 2024 was recorded at $999 million, showcasing a significant improvement of 74.02 per cent YoY from the deficit of $3.85 billion in the same period of the previous fiscal year.

Despite the positive current account balance, workers’ remittances experienced a slight decline in February, dropping by 6.17 per cent MoM to $2.25 billion. However, there was a noteworthy YoY increase of 13.07 per cent, amounting to $1.99 billion in February 2024.

Cumulatively, in the first eight months of the fiscal year 2024, workers’ remittances stood at $18.08 billion, slightly lower than the $18.31 billion recorded in the same period of the previous fiscal year, reflecting a decrease of 1.22 per cent YoY.

The combination of a current account surplus and fluctuating remittance figures paints a nuanced picture of Pakistan’s economic trajectory, indicating both areas of stability and areas for continued observation and analysis.