Pakistan Current Account Records a Surplus of $397 Million in December 2023, Marking Positive Second Quarter: SBP
KARACHI: The State Bank of Pakistan (SBP) reported a significant surplus of $397 million in Pakistan's current account for December 2023, leading to an overall surplus of $198 million for the entire second quarter of the fiscal year FY24. The December surplus, attributed to increased exports, higher remittances, and a sharp decline in imports, played a pivotal role in overcoming the urgent economic challenges that had threatened default at the beginning of FY24.
The latest figures released by the SBP on Wednesday revealed that the December surplus contrasted with a $365 million net loss in December 2022. Additional information disclosed that the current account deficit (CAD) for the first half of the current fiscal year was $831 million, a significant reduction from the $3.63 billion recorded in the same period of the previous fiscal year.
The government's efforts resulted in a substantial 77% reduction in the CAD, amounting to $2.8 billion. Financial experts suggest that continued reduction in the CAD could lead to an overall surplus by the end of the fiscal year, although the SBP anticipates a 1.5% GDP deficit. SBP data indicates that the balance of trade in goods and services for the first half of the current fiscal year was $11.382 billion, reflecting a $4.244 billion decrease from the same period in the previous year when it stood at $15.636 billion.
While the first quarter of FY24 (July–Sept) reported a $1.029 billion current account deficit, the second quarter (Oct–Dec) marked a significant turnaround with a $198 million surplus, highlighting a crucial shift in the economy.
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