Islamabad, Dec 18: In November 2024, Pakistan achieved a major economic milestone, recording its highest monthly current account surplus in a decade at $729 million.
This marked the fourth consecutive month of surplus, reflecting a consistent improvement in the country’s external account position. The surplus was primarily driven by increased workers’ remittances and an improved trade balance, boosting Pakistan’s overall economic outlook.
During the first five months of the current fiscal year (5MFY25), the cumulative current account surplus reached $944 million, a sharp reversal from the $1.676 billion deficit recorded during the same period in the previous fiscal year (5MFY24).
This improvement highlights growing resilience in Pakistan’s external sector, supported by stronger remittance inflows and effective trade deficit management.
Government and State Bank of Pakistan (SBP) policies, such as exchange rate stabilisation, higher foreign exchange reserves, and incentivised remittance channels, have also played a crucial role in this progress.
The surplus reduces dependency on external borrowing, strengthens foreign exchange reserves, stabilises the exchange rate, and eases inflationary pressures.
Economic analysts view this development as a positive indicator of Pakistan’s journey towards economic stability. However, they emphasise that sustaining the current account surplus will require continuous efforts to boost exports, maintain remittance inflows, and prudently manage imports amid global economic challenges.
