Pakistan Posts Impressive $119 Million Current Account Surplus in September 2024

Pakistan’s Current Account Surplus mainly due to Stronger Exports and Remittances Growth
In a notable growth, Pakistan’s current account surplus was registered at $119 million in September 2024, recovering from a $218 million deficit in September 2023. This improvement marks significant progress for the country’s economy, driven by a mix of factors such as stronger exports and increased remittances as reported in the media.
Key Economic Indicators for Pakistan’s Current Account Surplus
Export Growth: Exports rose 8%, demonstrating resilience in key sectors like textiles and agriculture, contributing to overall balance.
Remittances Surge: Pakistan saw a 29% increase in worker remittances, climbing to $2.849 billion in September, helping offset some of the pressure from imports. This uptick was driven by strong inflows from the Middle East, North America, and the UK.
Rising Imports: Despite the positive news on exports, imports surged by 19%, reaching $4.69 billion, reflecting ongoing demand for essential goods, machinery, and petroleum products. However, the growing import bill could potentially challenge future current account stability.
Government Reforms: The Pakistani government has been actively working on fiscal and monetary measures, including policies to boost remittances and reduce trade imbalances. Efforts to attract foreign direct investment (FDI) and promote local industries are starting to bear fruit.
Pakistan’s Economic Outlook for FY25
With the first quarter of FY25 showing promising signs—a 92% reduction in the current account deficit year-on-year—Pakistan’s economic outlook appears more favorable. However, sustained improvements depend on global market conditions, export competitiveness, and oil price fluctuations. Additionally, managing the widening import gap will be crucial to maintaining balance in the current account in the upcoming quarters.
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