ISLAMABAD - Pakistan’s current account has remained in surplus of $119 million in September this year, showing improvement in the country’s economic external account.
The country’s current account has recorded a surplus of $119 million in September 2024 as against a deficit of $1.24 billion in the same month of the previous year, according to the latest data of the State Bank of Pakistan (SBP). The data showed that the economy’s external account is improving. Pakistan’s current account deficit in the first three months (July to September) of the current fiscal year declined to $98 million, an amount that is a massive 92 percent lower than the deficit of $1.241 billion in the same period of the previous fiscal year.
According to the data, the country’s exports of goods have enhanced by 8 percent to $2.6 billion in September 2024 from $2.4 billion in the same month of the previous year. On the other hand, imports were recorded at $4.69 billion in September, which is 19 percent higher than the corresponding period of the previous year. Worker remittances clocked in at $2.849 billion, an increase of 29 percent as compared to the previous year.
In the first quarter of the current fiscal year, total export of goods amounted to $6.95 billion as against the imports of $12.28 billion during the period. The country’s worker remittances clocked in at $8.78 billion during July to September period of the current fiscal year, an increase of nearly 39 percent.
The ministry of finance had already projected that on the external front, it is expected that exports and imports will observe an increase in momentum. In September 2024, the exports are likely to remain within the range of $ 2.5-3.0 billion, imports $4.5-5.0 billion and workers’ remittances $2.7-3.2 billion. The external account position has strengthened due to improved exports and remittances nevertheless imports also increased. During Jul-Aug FY2025, the current account registered $0.2 billion compared to $ 0.9 billion last year; however, it recorded a surplus of $75 million in August 2024. During Jul-Aug FY2025, goods exports increased by 7.2 percent, reaching $ 4.9 billion, while imports stood at $ 9.5 billion, compared to $ 8.4 billion last year leading to a trade deficit of $ 4.7 billion.
Foreign direct investment (FDI) stood at $ 350 million, 55.5 percent up from the previous year. The main contributors to this growth were China ($175 million), Hong Kong ($70 million), and the UK ($43.5 million). The power sector received FDI of $210 million, accounting for a 60 percent share, followed by Oil & Gas exploration with $ 44.2 million (12.6% share). Moreover, private sector Foreign Portfolio Investment (FPI) had a net inflow of $ 24 million, while Public FPI recorded a net inflow of $78.2 million. Workers’ remittances increased by 44% reaching $5.9 billion, with the largest share from Saudi Arabia (25%). Pakistan’s total liquid foreign exchange reserves were recorded at $14.9 billion on Sep 20, 2024, with the State Bank of Pakistan’s reserves at $9.5 billion.