Pakistan’s economic performance saw a positive shift in October 2024, as the country recorded a current account surplus of $349 million, according to data from the State Bank of Pakistan (SBP). This marks the third consecutive month of surplus, driven by a rise in exports and remittance inflows.

In contrast, the same month last year had recorded a current account deficit of $287 million, highlighting significant progress in stabilizing the country’s external financial position.

Key Trade Metrics

• Exports: Total exports in October surged by 11.5% year-on-year, reaching $3.71 billion, compared to $3.33 billion in October 2023. Exports also showed a 12.6% increase compared to the previous month.
• Imports: Imports rose 6.9% year-on-year to $5.56 billion, up from $5.2 billion in October 2023. However, on a monthly basis, imports decreased by 1%, reflecting efforts to control import growth.

Trade Deficit Trends

The trade deficit for goods and services narrowed by 1.2% year-on-year to $1.85 billion in October. Compared to the previous month, the trade deficit shrank by a notable 20.4%, indicating an improving balance between exports and imports.

Fiscal Year Overview

For the first four months of the fiscal year 2024-25 (4MFY25):

• Exports increased by 8.5%, totaling $13.11 billion, compared to $12.08 billion in the same period last year.
• The trade deficit expanded by 15%, standing at $9.32 billion, compared to $8.1 billion in 4MFY24.

This surplus reflects Pakistan’s commitment to enhancing its economic resilience. Factors such as rising export figures and moderated imports are playing a critical role in improving the country’s external accounts.