Islamabad: Pakistan’s government reported a current account surplus of USD 119 million for September 2024, a significant improvement from the USD 218 million deficit in the same month last year. This update, reported on October 21, highlights Pakistan’s improved external balance.
For the first quarter of the fiscal year (July to September 2024), Pakistan’s current account deficit stood at USD 98 million – a sharp 92% reduction compared to the USD 1,241 million deficit in the corresponding period last year.
Key Drivers: Trade & Remittances
In September 2024, Pakistan’s exports reached USD 2.645 billion, an 8% rise compared to USD 2.438 billion in September 2023. However, imports surged by 19%, totalling USD 4.69 billion, up from USD 3.946 billion the previous year. Despite the rise in imports, reflecting growing domestic demand, the export increase partially offset the trade deficit.
Remittances, a crucial source of foreign exchange for Pakistan, saw a substantial boost. In September 2024, remittances amounted to USD 2.849 billion, marking a 29% year-on-year increase. This inflow of foreign currency has been vital in supporting Pakistan’s current account and mitigating the effects of the growing trade deficit.
First Quarter Highlights From July to September 2024, Pakistan’s exports totalled USD 6.95 billion, while imports reached USD 12.28 billion. Although the trade deficit remains significant, the growth in exports and remittances has helped narrow the current account gap. Remittances during this quarter surged by 39% to USD 8.78 billion, compared to the same period last year, further supporting the country’s external accounts.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
