Pakistan has posted a current account surplus of $729 million in November 2024, according to the latest data from the State Bank of Pakistan (SBP). This is the highest surplus in nearly 10 years.
What is a Current Account Surplus?
A current account surplus means that the country is earning more money from exports, remittances, and other foreign income than it is spending on imports and other expenses. This is a good sign for the country’s economy because it shows that Pakistan is bringing in more money than it is sending out.
How Does November 2024 Compare to Previous Months?
- November 2024: Surplus of $729 million.
- October 2024: Surplus of $246 million.
- November 2023: Deficit of $148 million.
This is a big improvement from the same month last year and even compared to October 2024.
Key Factors Behind the Surplus
The current account surplus in November was driven by several factors:
- Increase in Exports: Exports rose by 4% compared to last year, reaching $3.5 billion.
- Higher Remittances: Remittances from Pakistanis living abroad increased by 29%.
- Decrease in Imports: Imports decreased by 7% compared to last year, helping to balance the current account.
How Has the Current Account Performed This Year?
So far, in the current fiscal year (from July to November 2024), the current account has shown a positive trend.
- Surplus of $944 million in the first five months of FY 2025.
- Last year (FY 2024): The country had a deficit of $1.67 billion in the same period.
This shows a big improvement in Pakistan’s balance of payments.
Key Numbers at a Glance
| Month | Current Account Balance | Surplus/Deficit |
|---|---|---|
| November 2024 | $729 million | Surplus |
| October 2024 | $246 million | Surplus |
| November 2023 | -$148 million | Deficit |
| First 5 months of FY 2025 | $944 million | Surplus |
Summary
In November 2024, Pakistan’s economy showed strong signs of improvement with a significant current account surplus. This is mainly due to increased exports, higher remittances, and a decrease in imports. This positive trend suggests that Pakistan’s economic situation is getting better after a difficult period. It’s a hopeful sign for the future of Pakistan’s economy.
