Pakistan posts $119m current account surplus in Sept 2024

ISLAMABAD: Pakistan’s current account balance showed a surplus of US$119 million in September, marking a significant improvement from the US$136 million deficit recorded in the same month last year, ARY News reported citing the State Bank of Pakistan (SBP).

The current account deficit for the first quarter (July-September) of the fiscal year 2023-24 shrunk by 92 percent to US$98 million, down from US$1.24 billion in the corresponding period of the previous year.

This development comes as a positive sign for Pakistan’s economy, indicating a reduction in the country’s trade deficit and an increase in foreign exchange reserves.

What is current account?

The current account is a component of a country’s Balance of Payments (BOP) that tracks its international transactions. It measures the flow of goods, services, income, and transfer payments between a country and its trading partner.

Meanwhile, Pakistani rupee on Monday depreciated by 07 paisa against the US dollar in the interbank trading and closed at Rs277.68 against the previous day’s closing of Rs277.61.

However, according to the Forex Association of Pakistan (FAP), the buying and selling rates of the dollar in the open market stood at Rs277.85 and Rs279.35 respectively.

The price of Euro increased by 25 paisa to close at Rs301.27 against the last day’s closing of Rs301.02, according to the State Bank of Pakistan (SBP).

The Japanese yen went up by 01 paisa and closed at Rs1.85, whereas a decrease of 46 paisa was witnessed in the exchange rate of the British Pound, which traded at Rs361.56 as compared to the last day’s closing of Rs362.02.