Pakistan posts highest monthly current account surplus in nine years

A foreign currency dealer counts US dollars at a shop in Karachi on May 19, 2022. (AFP/File)
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Updated 22 April 2024
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Pakistan posts highest monthly current account surplus in nine years

  • Cumulatively, the current account balance improved from July till March, recording a deficit of only $0.5 billion
  • Karachi-based research firm Topline Securities says significant monthly surplus is due to higher remittances on Eid

ISLAMABAD: Pakistan recorded a current account surplus of $619 million in March, the central bank said on Monday, which was the highest in nine years.

Cumulatively, the country’s current account balance improved significantly from July 2023 till March 2024 and recorded a deficit of $0.5 billion only, compared to $4.1 billion during the same period in the previous year, according to the State Bank of Pakistan.

“Pakistan recorded Current Account Surplus of $619mn in Mar-2024 vs $537mn last year and $98mn in Feb-2024,” Topline Securities, a Karachi-based brokerage and research firm, said in its report.

“This is the highest monthly surplus after 9 years. We believe significant monthly surplus is due to higher remittances amid Eid inflows.”

The development comes amid hopes of the country’s successful talks with the International Monetary Fund (IMF) for a new bailout program, after Pakistan’s current $3 billion arrangement expires this month, as well as investment from friendly countries, including Saudi Arabia.

In March, remittances sent by Pakistani workers abroad increased by 31 percent on a month-on-month basis, with Saudi Arabia being the top contributor.

Pakistani expatriates remitted a total of $3 billion back home in the month of March, according to official figures shared by the SBP.

Pakistan’s finance minister, Muhammad Aurangzeb, has recently held meetings with official of the IMF, World Bank and other multilateral financial institutions.

During the meetings, the minister highlighted the government’s reforms and the country’s improved economic indicators for investment.


Pakistan’s Punjab deploys satellites, drones, AI to combat smog

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Pakistan’s Punjab deploys satellites, drones, AI to combat smog

  • Senior minister warns industrial masks may become necessary without a change in public attitudes toward pollution
  • Cities in Punjab face worsening smog each winter, driven by crop burning, vehicle emissions and industrial pollution

ISLAMABAD: Punjab Senior Minister Marriyum Aurangzeb on Wednesday said Pakistan’s most populous province deployed satellites, drones and artificial intelligence to tackle smog, warning that industrial masks may become necessary if public attitudes toward air pollution did not change.

Punjab cities face worsening smog each winter, driven by crop burning, vehicle emissions and industrial pollution that threatens public health and daily life. The smog season typically begins in late October, peaks between November and January and can persist through February.

Smog causes symptoms such as sore throats, eye irritation and respiratory illnesses, while prolonged exposure raises the risk of stroke, heart disease and lung cancer. Children are more vulnerable due to higher breathing rates and weaker immune systems.

“We have the AI machine-learning forecasting system in place, surveillance drones and technology cameras,” Aurangzeb said while addressing an event.

“At present, what is considered one of the world’s best environmental protection forces — with training, equipment, technology and digitally integrated data — is operating in Punjab,” she added.

Aurangzeb said surveillance is now being carried out through drones.

“There is monitoring, technology, cameras,” she continued. “Everything is digital.”

The minister maintained the eastern corridor from India was a major source of smoke which becomes active during the winter season.

She said this was the first time a complete testing system was introduced by the Environmental Protection Agency to measure pollution released by vehicles.

She added the government has loaned 5,000 super seeders to farmers, which are agricultural machines that plant crops directly into fields without removing leftover stubble, reducing crop burning, and helping curb winter smog.

Aurangzeb warned the situation could reach a point where people may have to use industrial masks and carry therm around like a “purse or wallet.”

“This will become a mandatory item if we do not change our attitudes and habits toward air quality, climate and conservation.”

Pakistan’s main urban centers routinely rank among the most polluted cities in the world, with vehicular emissions remaining one of the top contributors to air pollution.

The severe air pollution also undermines economic productivity and diminishes the quality of life for millions of residents.