Pakistan Posts $582M Current Account Surplus in Dec 2024

ISLAMABAD: Pakistan reported a current account surplus of US$582 million in December 2024, compared to a surplus of US$684 million recorded in November 2024. This brings the surplus for the first half of FY25 to US$1.21 billion, a significant improvement compared to a deficit of US$1.397 billion during the same period last year.

The earlier current account surplus for the first five months of FY25 stood at US$944 million. With the surplus for December 2024 reported at US$582 million, the cumulative figure for the first half of FY25 increased by US$266 million. This suggests that data for previous months was adjusted by US$316 million. Notably, the central bank revised current account numbers for July, August, September, and November 2024, with a large part of the revision reflecting adjustments in the services deficit.

The surplus for December 2024 exceeded expectations, as the trade deficit reported by the State Bank of Pakistan (SBP) was 29% lower than that reported by the Pakistan Bureau of Statistics (PBS), compared to a historic average difference of 10%.

The primary deficit fell by 12% month-on-month to US$743 million in December 2024, despite the usual trend of an increase in December over the past 4–5 years.

The secondary balance registered US$3.3 billion, up 6% month-on-month, driven by a 6% increase in remittances, which reached US$3.08 billion.