Karachi January 17 2025: In December 2024, Pakistan’s current account balance remained positive for the third consecutive month registering a surplus of USD 582 million taking first half surplus to USD 1,210 million, according to data released by State Bank of Pakistan.
The balance on primary income improved in December, with the deficit decreasing by 11.7 percent. It improved from a deficit of USD 841 million in November to USD 743 million in December due to easing interest and dividend repatriation. Meanwhile, the balance on secondary income, which includes remittances, showed a positive performance. Remittances increased by 5.6 percent, increasing to USD 3,075 million from USD 2,915 million, the overall secondary income balance remained at USD 3,380 million.
The balance of trade in goods remained in deficit, but the deficit narrowed by 27.3 percent, increasing to USD 1,725 million from USD 1,355 million in November. This deterioration was driven by a rise in imports despite uptick in exports. Exports of goods reached USD 3,054 million, marking a 11.3 percent increase from the USD 2,745 million in October. On the other hand, imports of goods experienced a 16.6 percent increase, increasing from USD 4,100 million in November to USD 4,779 million in December.
In the services sector, the balance also remained in deficit with widening gap. The balance on trade in services showed a USD 218 million deficit in December, a 9.0 percent increase compared to the USD 200 million deficit in November. While exports of services increased by 17.7 percent to USD 784 million, the imports of services increased by 15.7 percent, rising to USD 1,002 million.
As a result of these movements, Pakistan’s current account balance for December 2024 turned positive, registering a USD 582 million surplus, continuing the positive momentum of last two month.
When looking at the cumulative numbers for the first half of FY25 (July-December), Pakistan’s current account balance stood at a surplus of USD 1,210 million, showing improvement compared to the USD 1,397 million deficit in the same period of FY24. This change was largely driven by a stronger secondary income balance, which increased by 32.4 percent, due to notable rise in remittances by 32.8 percent over the same period last year. However, the balance of trade in goods worsened by 12.5 percent YoY, with the trade deficit in goods expanding to USD 11,524 million from USD 10,229 million in the same period of FY24.