Pakistan's current account records $270m deficit in May

June 22, 2024 (MLN): Pakistan has recorded a current account deficit of $270 million largely due to a significant increase in primary income deficit, the latest data issued by the State Bank of Pakistan (SBP) revealed today.

Last month, the country recorded a current account surplus of $499m, while in May, 2023 the current account surplus stood at $155m.

On a cumulative basis, the current account deficit in 11MFY24 was recorded at $464m, showing an improvement of 87.7% YoY when compared to the deficit of $3.77bn in 11MFY23.

During May, the country recorded a primary income deficit of $1.43bn, led by the highest ever monthly outflow of $1.5bn in the primary income account.

Meanwhile, total exports during May rose by 15.4% YoY to $3.7bn compared to $3.2bn in the same month of last year. While it rose 12.7% as against the exports of $3.28bn in the previous month.

Total imports rose 25.3% YoY to $5.93bn as compared to the imports worth $4.73bn recorded in May of last year. Compared to the previous month, imports rose 12.2%.

Accordingly, the trade deficit in goods and services rose 45.9% YoY to $2.23bn. On a monthly basis, it widened 11.4%.

Cumulatively, the trade deficit in 11MFY24 was recorded at $21.82bn, a drop of 11.4% YoY when compared to the deficit of $24.64bn in 11MFY23.

During the first 11 months of current fiscal year, exports rose 9.3% YoY to $35.81bn compared to $32.77bn in the same period last year.

Imports rose 0.4% YoY to $57.63bn in 11MFY24 compared to $57.41bn in the same period last year.

The data further details that the workers' remittances in May increased by 54.2% YoY to $3.24bn as against $2.1bn in May 2023; while on a monthly basis, the remittances went up by 15.3% MoM as compared to $2.81bn in the previous month.

Cumulatively in 11MFY24, workers' remittances were recorded at $27.09bn as compared to $25.15bn in 11MFY23, depicting a rise of 7.7% YoY.

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