Pakistan records July-Dec current account surplus of $1.2 billion

KARACHI: Pakistan posted another current account surplus of $582 million in December 2024, the highest in 15 years during the first half of the current fiscal year, the State Bank of Pakistan (SBP) data showed on Friday.

According to the central bank’s data, the total surplus for the July-December period of fiscal year 2024-25 reached $1.2 billion, compared to a deficit of $1.397bn in the same period last year.

Last month’s surplus reflected a 109% increase year-on-year; however, it narrowed by 15% compared with the previous month, which posted a larger surplus of $684 million.

This surplus provides crucial support to the government, which is struggling to meet external debt servicing requirements while facing a trade deficit.

The current account figures were released following the United Arab Emirates (UAE) agreed to roll over $2 billion in deposits with the SBP for another year. These deposits were maturing this month.

Furthermore, the data showed that inflows were higher in the second quarter of the current year, with the current account posting a surplus of $1.612bn for the October-December period. This compares to a net deficit of $402m in the first quarter, indicating that the second quarter was much better for the economy.

SBP reported that the trade balance in goods and services for the first half of FY25 was a net deficit of $13.103bn, compared to a net deficit of $11.590bn in the same period of the previous fiscal year.