Pakistan just hit a major milestone with its highest monthly surplus in ten years, racking up $729 million in November. That’s some serious financial flex!
Yo, the current account surplus is holding strong for the fourth month in a row, thanks to those higher remittances and a better trade balance. That’s what’s up!
Pakistan hit a major economic milestone in November 2024, scoring its biggest monthly current account surplus of $729 million in the past decade. Yo, this is the fourth month in a row with a surplus, showing that the country’s external account is on the up and up!
The impressive surplus is mainly due to increased workers’ remittances and a better trade balance, boosting the country’s economic vibe overall.
So, like, over the first five months of this fiscal year, the current account is looking pretty solid with a surplus of $944 million. Not too shabby! This is a major shift from the $1.676 billion deficit noted during the same period last fiscal year (5MFY24). The change shows that Pakistan’s external sector is getting stronger, thanks to positive vibes from remittance inflows and improved management of the trade deficit.
The boost in the current account is linked to the moves made by the government and the State Bank of Pakistan (SBP) to steady the external sector. This includes keeping the exchange rate stable, building up foreign exchange reserves, and making remittance channels more appealing.
Having a surplus is like levelling up your financial game. It cuts down on the need to borrow from outside and boosts the country’s foreign exchange reserves, which is a win for the exchange rate and helps keep inflation in check.
Economic experts are vibing with this development, seeing it as a solid sign that Pakistan’s economy is on the way to getting its act together. Still, they’re saying that keeping the current account surplus going means staying on top of export growth, getting those remittance flows in, and managing imports wisely, especially with all the global economic uncertainties out there.
For more Economic Updates visit our Website
