March 19, 2024 (MLN): Pakistan has recorded a current account surplus of $128 million largely due to a decline in imports, the latest data issued by the State Bank of Pakistan (SBP) revealed today.
Last month, the country recorded a current account deficit of $303m, while in February, 2023 the current account deficit stood at $50m.
Total exports fell by 5.80% MoM while rose by 14.09% YoY to $3.18bn as compared to the total exports of $3.38bn in the previous month and $2.79bn in the same month of last year.
However, total imports fell by 9.11% MoM to $5.06bn as compared to the imports worth $5.57bn recorded in January, while it rose 11.80% YoY compared to $4.53bn recorded in February of last year.
Meanwhile, on a cumulative basis, the current account deficit in 8MFY24 was recorded at $999m, showing an improvement of 74.02% YoY when compared to the deficit of $3.85bn in 8MFY23.
Measures such as currency devaluation, higher interest rates, and other policy steps have effectively curbed import demand, contributing to this surplus, said Mohammad Sohail, CEO of Topline Securities.
"Continued adherence to such measures will be essential for sustaining and further improving Pakistan's economic outlook," he added.
Furthermore, the workers' remittances in the month of February decreased by 6.17% MoM to $2.25bn as compared to $2.4bn in the previous month; while on a yearly basis, the remittances went up by 13.07% YoY as it stood at $1.99bn in February 2024.
Cumulatively in 8MFY24, workers' remittances were recorded at $18.08bn as compared to $18.31bn in 8MFY23, depicting a fall of 1.22% YoY.
