By Staff Reporter
KARACHI: Pakistan’s current account swung to a surprise surplus of $1.2 billion in the first half of the fiscal year 2025, driven by higher remittances and export growth.
The surplus, reported by the State Bank of Pakistan on Friday, marks a significant turnaround from the $1.39 billion deficit in the same period of the previous fiscal year. Analysts attributed the improvement to higher remittance inflows, a controlled trade deficit, and robust export earnings.
Pakistan’s current account surplus narrowed to $582 million in December from $684 million in November. The State Bank of Pakistan revised current account numbers for July, August, September, and November 2024, with the large part of the revision made in services deficit.
The Balance of Payments turned negative for the month due to loan repayments, but remains in positive territory during the first half of FY25. The country’s foreign exchange reserves increased by $2.3 billion to $11.7 billion, improving import cover to 2.8 months from 2.0 months.
The central bank has projected a current account balance within the lower end of the projected range of 0–1 percent of GDP for FY25. Analysts said the target appears achievable, supported by a balanced trade deficit and stable remittance inflows.
Copyright © 2021 Independent Pakistan | All rights reserved
