Pakistan's current account surplus hits decade-high of $729 million in November

Pakistan's current account posted a surplus of $729 million in November, marking a ten-year high driven by lower imports and higher exports.

This is a significant turnaround from November 2023, when the current account recorded a deficit of $148 million.

The surplus is expected to help stabilize the Pakistani currency against the US dollar and other global currencies, bolster foreign exchange reserves, and enhance the country's capacity to pay for rising imports and repay maturing foreign debt.

The last time the current account was in surplus on a monthly basis was in February 2015, with a surplus of $801 million.

Over the first five months of the current fiscal year, the current account has accumulated a surplus of $944 million, compared to a deficit of $1.67 billion during the same period last year.

Despite the current account surplus, the country posted a trade deficit of $1.36 billion in November and a five-month trade deficit of $9.68 billion.

The State Bank of Pakistan (SBP) has projected a 12.6 percent growth in exports for FY25. Additionally, the number of workers going abroad has increased compared to last year, with remittances expected to maintain a robust trend. GDP growth for FY25 is anticipated to exceed 3 percent.

The services trade deficit for the month was recorded at $152 million, with a five-month deficit of $1.14 billion.

In terms of direct investment, November saw an outflow of $212 million and an inflow of $37 million in portfolio investment. Workers' remittances recorded an inflow of $2.9 billion during November 2024, reflecting a 29.1 percent year-on-year increase.

Cumulatively, workers' remittances totaled $14.8 billion from July to November FY25, a 33.6 percent increase compared to $11.1 billion during the same period in FY24.