Pakistan current account balance moved to positive line up second economic reforms

Pakistan’s economy will recover at the end of the month when the current account balance turns positive in August 2024 after having run negative for three months in a row. State Bank of Pakistan said that the current account came in surplus by $75 million for the month.

The turnaround is mostly attributed to a sharp rise in IT exports, stronger inflows of foreign direct investment, and greater remittances from overseas Pakistanis. Efforts by the state, particularly those initiated with the help of the Special Investment Facilitation Council, contributed greatly to this improvement.

IT exports continued at their impressive 27% growth posting, which now constitute 48% of the total exports and posted $298 million. Foreign direct investment gained 64% as by the opening of the current fiscal year was $350 million compared to $225 million during the same period last year.
Remittances from overseas Pakistanis also surged and rose from $2.09 billion in August 2023 to $2.94 billion in August 2024.

All this testifies to the effectiveness of the measures implemented by the government to stabilize and strengthen the national economy with the help of the SIFC; the improvement in current account balance is treated as the result of the conciliative efforts, too.