The recovery was ascribed to a noteworthy reduction in the trade imbalance, which dropped by 87% in the same time frame.
The current account deficit was $27 million as of May 2024. The trade numbers for the month showed a $2.3 billion trade imbalance, with imports of $5.93 billion and exports of $3.69 billion. In 2024, the total deficit resulting from trade, services, and revenue was $3.66 billion.
The current account balance was positively impacted by worker remittances in May, totaling $3.24 million. However, throughout the course of the 11 months, the current account balance was slightly negative, at $46.40 million.
Pakistan’s trade imbalance was $19.72 billion between July 2023 and May 2024, with imports totaling $48.40 billion and exports substantially lower at $28.67 billion.
Over the course of the 11 months, $29.37 billion was recorded as the total loss from commerce, services, and income. The reported amount of worker remittances during this time frame was $27.9 million.
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Pakistan is now in negotiations with the International Monetary Fund (IMF) to extend its existing bailout period with the lender in order to support the $9.13 billion foreign exchange reserves held by its central bank.