Islamabad, Pakistan's current account balance for October 2023 nearly reached a break-even point with a deficit of just US$74 million. This figure is part of the cumulative US$1.1 billion current account deficit (CAD) recorded in the first four months of fiscal year 2024. Despite efficient management of the external balance, with limited CAD in three of these four months, an elevated income deficit is posing a significant challenge, offsetting gains from higher remittances and exports.

According to JS Research, the lower trade deficit of US$1.6 billion in October, attributed to a 14-month high in exports at US$2.8 billion, and a 7-month high in remittances at US$2.5 billion, were largely counterbalanced by a substantial income balance deficit of US$881 million. This deficit marks the highest in at least 13 years. The report highlights that while administrative measures to manage the external account have been effective, normalizing the current account deficit might require more time. This is to ensure stability in the exchange rate between the Pakistani Rupee and the US Dollar, as debt rollovers and refinancing take precedence. JS Research maintains its estimate for Pakistan's FY24 current account deficit to be close to US$5.5 billion.