Economic revival: Pakistan’s current account swings to surplus in August 2024
IT exports, remittances, and FDI surge contribute to the positive balance.
Pakistan’s economy has shown signs of recovery as the current account balance turned positive in August 2024, breaking a three-month negative streak. According to the State Bank of Pakistan’s data, the current account recorded a surplus of $75 million in August.
This economic improvement is driven by several factors, including a notable rise in IT exports, foreign direct investment (FDI), and remittances from overseas Pakistanis. The government’s strategic initiatives, bolstered by the Special Investment Facilitation Council (SIFC), have been instrumental in achieving this positive outcome.
IT exports saw a substantial 27% growth, reaching $298 million, now comprising 48% of the nation’s total exports. Additionally, FDI surged by 64% at the beginning of the fiscal year, climbing to $350 million, compared to $225 million during the same period last year.
Remittances also played a significant role, increasing from $2.09 billion in August 2023 to $2.94 billion in August 2024.
These positive shifts highlight the success of government policies aimed at economic stabilization, with SIFC playing a key role in driving these advancements. The surplus in the current account is seen as a direct result of these coordinated efforts.
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