Karachi: The State Bank of Pakistan (SBP), signalling a positive transformation, has recently revealed that Pakistan’s current account displayed a surplus of USD 9 million in November 2023, according to a news source on December 19.
As reported by the SBP on Monday, this surplus has been observed after experiencing a deficit in the initial four months of the fiscal year (FY) 2023-24. The cumulative current account deficit (CAD) for the first five months of FY24 witnessed a substantial decline of 64%, amounting to USD 1.16 billion. This is in stark contrast to the USD 3.24 billion recorded during the corresponding period of the previous fiscal year.
Akseer Research Director Mohammad Awais Ashraf highlighted the positive role of increased technology exports by nearly 9%, reaching USD 259 million in November. Other business services also experienced growth of almost 10% to USD 137 million. This, coupled with a 20% month-on-month drop in the trade-in-service deficit, contributed to the overall surplus.
Experts attribute the current account surplus to several factors, including advancements in technology exports, the export of government services, reduced interest payments, and lower profit repatriation by foreign companies in November 2023, compared to October 2023.
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