In November 2023, Pakistan’s current account had a $9 million surplus following four months of deficits.
According to data provided by the State Bank of Pakistan (SBP) on Monday, this stands in sharp contrast to the deficit of $157 million reported in the same month of the previous year.
SBP Reported Pakistan’s Current Account Surplus
Although this is the first surplus since June 2023, the volume is still far less than it was before, at $520 million.
Current Account Deficit improved significantly to $1.16 billion in Jul-Nov FY24, from $3.26 billion in Jul-Nov FY23.https://t.co/q3LNv3HOB0https://t.co/Od8ikVvXrd#SBPBOP pic.twitter.com/MpkC0gTj4l
— SBP (@StateBank_Pak) December 18, 2023
According to experts, the country’s exports and remittances have significantly increased, while imports have slightly decreased. This has resulted in a surplus.
It is important to note that in October 2023, the nation reported a $184 million current account deficit.
The country’s exports (goods and services) rose by more than 12% to $3.364 billion in November 2023 from $2.999 billion in November 2022, according to figures from the central bank.
Rise in Remittances
Remittances from the nation totaled $2.25 billion in November 2023 compared to $2.17 billion in the same month the previous year, indicating a little 4% rise.
Conversely, overall imports decreased to $5.29 billion in November 2023 from $5.01 billion in the same month the previous year, an almost 6% decrease.
As to SBP, Pakistan reported a $1.16 billion current account deficit from July to November of FY24, a significant decrease of over $2 billion or 64% from the $3.3 billion deficit in the same period of the previous fiscal year (FY23).
Monetary Policy Committee (MPC) Meeting
During its most recent Monetary Policy Committee (MPC) meeting, which took place on December 12, the central bank reported that the current account balance had significantly improved, with the deficit falling by 65.9% on an annual basis to $1.1 billion from July to October of FY24.
For cash-strapped Pakistan, which mainly depends on imports to run its economy, the current account is an important statistic.
According to the most recent data, an expanding deficit strains government foreign exchange reserves, which were just over $7 billion, and puts pressure on the exchange rate.
To read our blog on “Pak’s current account deficit reduced by 91% YoY in Oct 2023,” click here.
