Islamabad, Pakistan's economy marked a substantial achievement in March 2024, registering a current account surplus of US$619 million, its highest in eight years and one of the top three monthly balances in the last two decades.

According to JS Global, this performance caps a period of notable financial stability, with the current account surplus significantly contributing to a nine-month fiscal year 2024 (9MFY24) deficit reduction to US$508 million, an 87% improvement year-over-year. The March surplus, bolstered by a 31% month-over-month increase in remittances during Ramadan, follows a similar trend observed in the previous year. The United Kingdom, United Arab Emirates, and Saudi Arabia were the top contributors to this growth.

The financial account also showed positive movements, with limited outflows and inflows nearly balancing each other, leading to a Balance of Payments (BoP) surplus of US$244 million for March. This surge has helped boost the State Bank of Pakistan’s reserves, contributing to an overall BoP surplus of US$2.5 billion for the first nine months of the fiscal year.

Looking ahead, while monthly exports are expected to stabilize, remittances are anticipated to normalize. Despite these adjustments, the current account is predicted to maintain lower monthly deficits due to subdued import demand and controlled external resource utilization.

The detailed analysis from JS Research also highlighted ongoing challenges and strategies within Pakistan’s economic landscape, including the management of higher oil prices, which will influence future import strategies.