Pakistan’s current account surplus climbs to $491 million

WEB DESK: Pakistan’s current account recorded a surplus of $491 million in April 2024, according to the latest data released by the State Bank of Pakistan (SBP).

This marks an increase from the previous month’s surplus of $434 million and a significant rise compared to the $134 million surplus recorded in April 2023.

On a cumulative basis, the current account deficit for the first ten months of the fiscal year 2024 (10MFY24) stood at $202 million, a remarkable improvement of 94.8 per cent year-on-year (YoY) compared to the $3.92 billion deficit recorded during the same period in FY23.

The data also highlighted a notable increase in total exports, which rose by 22.0 per cent YoY to $3.28 billion in April 2024, up from $2.69 billion in April 2023. On a month-on-month (MoM) basis, exports saw a modest increase of 1.6 per cent, rising from $3.23 billion in March 2024.

Total imports in April 2024 also saw an increase of 21.5 per cent YoY to $5.28 billion, compared to $4.35 billion in April 2023. However, on a MoM basis, imports decreased by 2.7 per cent from $5.42 billion in March 2024.

As a result, the trade deficit in goods and services widened by 20.6 per cent YoY to $2 billion in April 2024. However, on a monthly basis, the trade deficit narrowed by 9.0 per cent.

Breaking down the data, the trade deficit in goods was $1.81 billion, up 21.9 per cent YoY but down 11.3 per cent MoM. This was driven by a 23.4 per cent YoY increase in exports and a 22.8 per cent YoY rise in imports.

Dw: the trade deficit in goods was increased $1.91 billion due to the lesser exports witness

The trade deficit in services was reported at $187 million, marking a 9.4 per cent YoY increase from $171 million in April 2023 and a 22.2 per cent MoM increase from $153 million in March 2024.

Furthermore, workers’ remittances in April 2024 increased by 27.9 per cent YoY to $2.81 billion, up from $2.2 billion in April 2023. On a monthly basis, however, remittances declined by 4.8 per cent from $2.95 billion in March 2024.

Cumulatively, workers’ remittances for 10MFY24 reached $23.85 billion, representing a 3.5 per cent YoY increase compared to $23.04 billion in 10MFY23.

This data indicates a positive trend in Pakistan’s economic performance, with significant improvements in the current account and trade balances, driven by rising exports and remittances.

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