Remittances boost Pakistan’s current account, August surplus ends deficit streak

Pakistan’s current account, after witnessing three straight months of deficit, recorded a slight surplus in August 2024.

According to official data from the State Bank of Pakistan (SBP), the current account recorded a surplus of $75 million as compared to $152 million deficit seen in August 2023.

Experts say that the surplus seen in the last month was due the remittances which improved by 40 per cent to $2.9 billion on a Year-on-Year basis. In second month of the ongoing fiscal year, remittances are up by 44 per cent.

Pakistan’s total export of goods and services were valued at $1.108 billion, showing increase of one per cent as opposed to 3.081 billion seen in August 2023.

Considering contributions from the workers, remittances were 40 per cent higher than August 2023.

Analysts are expecting a surplus for the ongoing fiscal year as inflation is predicted to ease further in the coming days and the essential item’s prices may decline further.

If remittances continue to improve with the pace observed in recent months, Pakistan’s current account might be seen in a much better position in near future.