Pakistan’s current account surplus soars to $334 million in June

The State Bank of Pakistan (SBP) has reported that Pakistan’s current account has achieved a surplus for the fourth consecutive month, reaching $334 million in June 2023.

This marks a significant improvement compared to the previous year when the current account recorded a deficit of $2.32 billion during the same period. The sustained monthly surplus trend began in March 2023.

Current Account recorded a surplus of $334 million in Jun 2023.https://t.co/Od8ikVvXrd#SBPBOP pic.twitter.com/llVGIKiKNa

— SBP (@StateBank_Pak) July 18, 2023

The primary factors contributing to this surplus, as highlighted by Arif Habib Limited (AHL), a reputable brokerage house, are a notable 55 per cent year-on-year decline in total imports and a 29 per cent year-on-year decrease in exports. Furthermore, remittances experienced a 22 per cent year-on-year decrease.

Data from the central bank reveals that Pakistan’s exports in June 2023 increased to $2.698 billion, in contrast to the total goods and services export value of $3.794 billion in June 2022.

Conversely, total imports amounted to $3.847 billion in June 2023, down from $8.533 billion in the corresponding period of the previous year.