Decade-high C/A surplus posted

Following a substantial policy rate cut, Pakistan recorded its highest current account surplus in over a decade, reaching $729 million in November 2024. This positive development was primarily driven by a surge in remittances from overseas Pakistanis, while a significant reduction in the trade deficit further contributed to the surplus. "November 2024 current account surplus stood at $729 million, marking a 15-year high and a 111% month-on-month (MoM) increase," stated Shankar Talreja, Director of Research at Topline Securities. "This brought the cumulative current account surplus for the first five months of FY2025 (5MFY25) to $944 million, compared to a deficit of $1.67 billion in 5MFY24." The notable improvement in November's surplus is attributed to a 14% MoM decline in the trade deficit and a 43% MoM drop in the services deficit. Additionally, the primary deficit fell by 7% MoM, reflecting broader economic stabilisation.