Pakistan has achieved a remarkable milestone in its economic trajectory as it records a current account surplus of $619 million in March 2024, marking the highest monthly surplus since February 2015.
This significant achievement, revealed in the latest data issued by the State Bank of Pakistan (SBP), is primarily attributed to a substantial increase in workers' remittances.
The surge in workers' remittances played a pivotal role in bolstering the country's financial standing, with remittances in March escalating by 16.4% year-on-year to $2.95 billion, compared to $2.54 billion in March 2023. Moreover, on a monthly basis, remittances surged by an impressive 31.3% month-on-month, reaching $2.25 billion in the preceding month.
On the trade front, Pakistan witnessed encouraging trends. Total exports saw a 4.6% year-on-year increase to $3.23 billion, compared to $3.09 billion in the same period last year.
Meanwhile, imports rose by 7.9% year-on-year to $5.25 billion, indicating a robust economic activity. However, this led to a widening trade deficit in goods and services, which stood at $2.02 billion, up 13.7% year-on-year.
Delving into the specifics, the trade deficit in goods amounted to $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, underlining the challenges in balancing trade dynamics.
Cumulatively, in the first nine months of the 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 corresponding period of the previous fiscal year.
These latest economic indicators underscore Pakistan's resilience and potential for sustained growth. The surge in remittances, coupled with positive trends in trade, bodes well for the country's economic stability and development.
However, it also underscores the need for strategic measures to address trade imbalances and enhance export competitiveness to ensure long-term economic prosperity.
