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Pakistan Achieves Decade-High $729 Million Current Account Surplus in Nov 2024

Current Account Surplus in Nov 2024

In a major economic milestone, Pakistan recorded $729 Million Current Account Surplus in Nov 2024, marking the highest monthly surplus in over a decade. This achievement reflects a sustained improvement in the country’s external account position, driven by higher remittances, a decline in imports, and moderate growth in exports.

According to the State Bank of Pakistan (SBP), this surplus follows a consistent trend, with the current account remaining in surplus for the fourth consecutive month. The cumulative surplus for the first five months of FY2025 (July-November) now stands at $944 million, a stark contrast to the $1.68 billion deficit recorded during the same period last year.

Pakistan’s 10-Year Highest Current Account Surplus in Nov 2024

  • Pakistan achieved a decade-high current account surplus of $729 million in November 2024, driven by higher remittances, reduced imports, and moderate export growth, marking a significant improvement in its external economic position.

وزیرِاعظم شہباز شریف نے نومبر 2024 میں پاکستان کے کرنٹ اکاؤنٹ سرپلس کے 729 ملین ڈالر تک پہنچنے پر اطمینان کا اظہار کیا، جو پچھلے 10 سالوں میں سب سے زیادہ ہے۔ اس پیش رفت کی بنیادی وجوہات میں ترسیلاتِ زر میں 29 فیصد اضافہ، درآمدات میں 7 فیصد کمی اور برآمدات میں 4 فیصد اضافہ شامل ہیں۔

نومبر کا کرنٹ اکاؤنٹ سرپلس مسلسل چوتھے مہینے میں مثبت معاشی کارکردگی کا عکاس ہے، جبکہ جولائی تا نومبر مالی سال 2025 کے دوران مجموعی کرنٹ اکاؤنٹ سرپلس 944 ملین ڈالر رہا، جو پچھلے مالی سال کے اسی دورانیے میں 1.68 بلین ڈالر کے خسارے کے برعکس ہے۔ یہ بہتری حکومت کی بہترین معاشی پالیسیوں، درآمدات پر کنٹرول، اور مستحکم مالیاتی اقدامات کی بدولت ہے۔

Key Drivers Behind the Current Account Surplus in Nov 2024

The $729 million surplus in November represents a 111% increase compared to October’s revised surplus of $346 million. It is also the second-highest monthly surplus since July 2013, underscoring significant economic improvements.

A surge in remittances played a pivotal role, reaching $2.9 billion in November—a 29% year-on-year (YoY) increase. The majority of these inflows came from key markets such as Saudi Arabia (up 34%), the UAE (up 50%), and the UK (up 20%). Cumulatively, remittances for the first five months of FY2025 rose by 34% YoY to $14.77 billion.

Exports also contributed positively, with goods and services exports amounting to $3.45 billion in November, a 4% YoY increase. On the other hand, imports declined significantly, falling by 7% YoY to $4.96 billion during the same month. Notably, goods imports dropped by 9%, driven by reduced petroleum and machinery imports.

The trade deficit narrowed sharply by 24% YoY in November, supported by declining global oil prices and a moderation in food and machinery imports. Petroleum imports saw a 29% drop, reflecting lower international crude prices, which averaged $74.85 per barrel in November, down from $76.34 in October.

Policy Measures and Economic Impact on Pakistan’s Current Account Surplus in Nov 2024

Prime Minister Shehbaz Sharif lauded this economic achievement, attributing it to prudent government policies aimed at stabilizing the economy. He highlighted the importance of the SBP’s policy rate cuts, which have been reduced by 900 basis points in 2024 to the current level of 13%. These measures, coupled with declining inflation—now at 4.9%—and increased investor confidence, have bolstered Pakistan’s economic outlook.

“The record $729 million surplus in November is a clear indication of our positive economic policies.” PM Shehbaz

He emphasized that the surplus would strengthen Pakistan’s position in international markets and encourage both local and foreign investments. Finance Minister Muhammad Aurangzeb and Minister of State for Finance Ali Pervaiz Malik were also commended for their efforts in achieving this milestone.

Foreign Direct Investment Gains

Foreign Direct Investment (FDI) also showed an encouraging trend, with net inflows reaching $219 million in November, up from $133 million in October. Over the first five months of FY2025, net FDI inflows increased by 31% YoY to $1.1 billion, compared to $856 million during the same period last year. This also helped Pakistan’s Current Account in Nov 2024 to remain in surplus.

Challenges and Outlook of Pakistan’s Economy

While the improvement in external accounts is promising, challenges persist. The cumulative trade deficit for the first five months of FY2025 stood at $10.8 billion, a 7% YoY increase. However, this was offset by a decline in the services deficit and a narrowing goods deficit.

Experts believe that Pakistan’s sustained economic recovery hinges on maintaining a balance between import restrictions and export growth. The SBP governor, in a recent briefing, reiterated optimism, projecting the current account surplus to settle within 0-1% of GDP for FY2025.

As Pakistan moves forward, its ability to manage external accounts effectively while fostering economic growth will be crucial. The latest figures, however, signal a strong step toward financial stability and economic recovery.

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