Pakistan's current account turns surplus in August 2024 after three months of deficit

In a positive development for Pakistan's economy, the current account registered a surplus of $7.5 million in August 2024, marking a turnaround after three consecutive months of deficit, according to the State Bank of Pakistan.

The current account deficit in July 2024 stood at $246 million, while in August 2023, it was $152 million. The State Bank reported an 81% reduction in the current account deficit during the first two months of the current financial year compared to the same period last year.

In the first two months of this fiscal year, the current account deficit was $171 million, compared to $893 million in the previous year. Experts attribute this improvement to a 40% increase in remittances, which reached $2.9 billion in August 2024, significantly easing pressure on the current account. Remittances have risen by 44% in the first two months of this financial year.