In March 2024, Pakistan reached a significant milestone in its economic journey with a current account surplus of $619 million, marking the highest monthly surplus since February 2015.
This notable accomplishment, as per the latest data released by the State Bank of Pakistan (SBP), is primarily credited to a notable increase in workers’ remittances.
The surge in remittances played a pivotal role in strengthening the country’s financial position, with March witnessing a 16.4% year-on-year rise in remittances to $2.95 billion, compared to $2.54 billion in March 2023. Moreover, monthly remittances surged impressively by 31.3% month-on-month to $2.25 billion in the preceding month.
On the trade front, Pakistan saw positive trends. Total exports increased by 4.6% year-on-year to $3.23 billion, compared to $3.09 billion in the same period last year.
However, imports also rose by 7.9% year-on-year to $5.25 billion, indicating robust economic activity. This led to a widening trade deficit in goods and services, reaching $2.02 billion, up 13.7% year-on-year.
Breaking down the figures, the trade deficit in goods stood at $1.93 billion, reflecting an 11.2% year-on-year increase, driven by a 7.0% rise in imports. Similarly, the trade deficit in services surged to $89 million, a 128.2% year-on-year increase, highlighting the challenges in balancing trade dynamics.
Overall, in the first nine months of fiscal year 2024, Pakistan witnessed a current account deficit of $508 million, showcasing a remarkable improvement of 87.5% year-on-year compared to the deficit of $4.05 billion in the same period of the previous fiscal year.
These latest economic indicators underscore Pakistan’s resilience and potential for sustained growth. The surge in remittances, along with positive trade trends, augur well for the country’s economic stability and development.
