For the third month in a row, Pakistan has achieved a current account surplus, recording $349 million in October 2024, as reported by the State Bank of Pakistan (SBP). This marks a stark contrast to October 2023, which had a deficit of $287 million, showcasing considerable improvement in the country’s external financial health.
Strong Export Growth
October witnessed an impressive 11.5% growth in exports, which totaled $3.71 billion, compared to $3.33 billion in the same month last year. Additionally, exports showed a 12.6% increase from the preceding month, reflecting sustained upward momentum.
Controlled Import Trends
While imports rose by 6.9% year-on-year to reach $5.56 billion, they declined by 1% on a monthly basis, signifying effective measures to curb non-essential spending.
Trade Deficit Dynamics
The trade deficit in goods and services narrowed to $1.85 billion, a reduction of 1.2% year-on-year, with a sharp 20.4% decrease compared to the previous month.
Fiscal Year-to-Date Overview
In the first four months of FY25:
- Exports increased by 8.5%, totaling $13.11 billion, up from $12.08 billion in the same period last year.
- However, the trade deficit widened by 15%, amounting to $9.32 billion, compared to $8.1 billion during 4MFY24.
This sustained current account surplus reflects strategic measures taken to enhance Pakistan’s economic resilience, particularly through export-driven growth and a cautious approach to imports. These efforts are pivotal in maintaining external stability amid global economic challenges.