Karachi, October 22, 2024: Pakistan has reported a current account surplus of USD 119 million for September 2024, a notable turnaround from the USD 218 million deficit recorded in the same month last year. This marks the second consecutive month of surplus, reflecting a positive shift in the country’s economic landscape.
The improvement in the current account balance is largely attributed to a significant 29% year-on-year increase in remittances, which has greatly bolstered secondary income. For the first quarter of the fiscal year 2025 (1QFY25), the current account deficit now stands at USD 98 million.
It is important to note that the surplus for August 2024 has been revised down from USD 75 million to USD 29 million, indicating a more conservative outlook than previous estimates.
In September 2024, total exports reached USD 3.3 billion, marking a 10% increase compared to USD 3.0 billion in September 2023. However, imports also rose, totalling USD 5.6 billion, reflecting a 15% increase from USD 4.8 billion a year earlier.
The primary income balance recorded a deficit of USD 668 million, representing a 1% year-on-year increase and a 19% month-on-month rise. Meanwhile, secondary income reached USD 3.1 billion in September 2024, marking a significant 34% increase from the previous year, although it saw a slight decline of 1% from the previous month.
Remittances amounted to USD 2.8 billion in September 2024, showcasing a robust 29% growth compared to the same month last year.
On the financial front, the financial account deficit widened to USD 255 million. Net foreign direct investment saw an outflow of USD 385 million, which represents an 81% increase year-on-year.
Overall, the balance of payments for September 2024 recorded a deficit of USD 347 million, a significant shift from the USD 29 million deficit reported in the same month last year.
These figures highlight the ongoing challenges in balancing trade and investment flows, even as the country experiences a positive trend in remittances and secondary income.
