ISLAMABAD: Pakistan’s external current account recorded a surplus of $349 million in October 2024, marking the third consecutive month of surplus and the highest in this period, according to the State Bank of Pakistan (SBP) on Monday.
The current account reflects a nation’s transactions with the rest of the world, encompassing net trade in goods and services, net earnings on cross-border investments and net transfer payments.
A surplus indicates that a country is exporting more than it is importing, thereby strengthening its foreign exchange reserves.
Last month’s current account surplus contrasts sharply with the $290 million deficit recorded in October 2023, highlighting a significant improvement in the country’s economy.
“The external current account recorded a surplus of $349 million in October 2024, after showing a surplus of $86 million and $29 million in September 2024 and August 2024 respectively,” the central bank said in a brief statement.
Pakistan has faced economic challenges in recent years, including high inflation, a depreciating currency, and dwindling foreign reserves.
In response, the government has implemented a series of reforms aimed at stabilizing the economy, including securing a $7 billion bailout from the International Monetary Fund (IMF) in September, which is contingent upon measures such as broadening the tax base, reducing energy sector deficits and privatizing state-owned enterprises.
The consecutive current account surpluses, culminating in the substantial $349 million in October, suggest that Pakistan is transitioning from mere stabilization to a phase of economic growth.
This positive trend is bolstered by increased remittances from overseas Pakistanis, which reached a record $11.8 billion in the first four months of the fiscal year, marking a 35 percent year-on-year growth.
Pakistani authorities have emphasized the importance of continuing prudent fiscal and monetary policies to consolidate these gains and ensure long-term economic stability.
The country’s finance chief, Muhammad Aurangzeb, said a day earlier the international lending agencies had acknowledged the improvement in the national economy, though he added that they wanted the government to continue with stringent structural reforms.
“There is no room for complacency,” he added.
Pakistan’s current account surplus hits $349 million in October, signaling economic turnaround
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Pakistan’s current account surplus hits $349 million in October, signaling economic turnaround

- Last year, Pakistan posted a current account deficit of $290 million during the same month, as per official records
- This is the third consecutive month in which Pakistan has recorded a surplus, also the highest during this year
In fresh alert, US advises citizens against traveling to northwest Pakistan citing security threats

- US mission advises American government personnel to travel in northwestern Pakistan in armored vehicles and with armed escorts
- Pakistani Taliban militants have frequently targeted security forces and civilians via gun attacks and bomb blast in KP in recent months
KARACHI: The US Mission in Pakistan this week issued a security alert for its nationals in the country, warning them against traveling to the volatile northwestern Khyber Pakhtunkhwa (KP) province citing frequent attacks by “terrorist and insurgent groups.”
Pakistan has recently experienced a significant surge in militant violence, particularly in its western provinces of KP and Balochistan, where groups like the Tehreek-e-Taliban Pakistan (TTP) and Balochistan Liberation Army (BLA) have targeted civilians and security forces.
The TTP has frequently targeted security convoys and checkpoints apart from being linked to a rise in targeted killings and abductions of law enforcement personnel and government officials in KP recent months. In March this year, the US declared a Level 4 threat for KP, advising nationals not to travel there.
“Do not travel to the Khyber Pakhtunkhwa province, which includes the former FATA [Federally Administered Tribal Areas] for any reason,” a statement from the US Mission, shared by the US embassy and consulates in Pakistan, said.
“Active terrorist and insurgent groups routinely conduct attacks against civilians, non-governmental organizations, government offices, and security services personnel (police and military).”
The alert said these militants have targeted government officials and civilians, with frequent incidents of assassinations and kidnappings, including attacks on polio vaccination teams in the past.
The US Mission urged American government personnel to travel in armored vehicles with armed escorts whether on official or personal trips to northwestern Pakistan.
“Additional restrictions on movements can occur suddenly and at any time, depending on local circumstances and security conditions,” it said.
Pakistan was ranked as the world’s second-most affected country by “terrorism,” according to a global index published by the Australia-based Institute for Economics and Peace, which assessed 163 countries covering 99.7 percent of the global population.
Pakistan set to hold rates, dollar bonds slide in shadow of Israel-Iran conflict

- Several brokerages initially expected a cut but revised their forecasts after Israeli strikes sparked fears of a broader conflict
- Long-dated dollar bonds for Israel, Egypt, Pakistan slipped Friday, Israel’s shekel tumbled following Iran strikes
KARACHI: Pakistan’s central bank is expected to hold its policy rate on Monday, a Reuters poll showed, as many analysts shifted their previous view of a cut in the wake of Israel’s military strike on Iran, citing inflation risks from rising global commodity prices.
Israel said on Friday it targeted nuclear facilities, ballistic missile factories and military commanders in a “preemptive strike” to prevent Tehran from building an atomic weapon.
Several brokerages had initially expected a cut but revised their forecasts after the Israeli strikes sparked fears of a broader conflict. The escalating hostilities triggered a sharp spike in oil prices — a worry for Pakistan given the broader impact on imported inflation from a potentially prolonged conflict and tightening of crude supplies.
Eleven of 14 respondents in a snap poll expected the State Bank of Pakistan (SBP) to leave the benchmark rate unchanged at 12 percent. Two forecast a 100 basis-point cut and one predicted a 50 bps cut.
“There remains an upside risk of a rise in global commodity prices in light of geopolitical tensions which could mark a return to inflationary pressures,” said Ahmad Mobeen, senior economist at S&P Global Market Intelligence.
“The resultant higher import bill could also threaten external sector performance and bring pressure to the exchange rate.”
Inflation in the South Asian country has been declining for several months after it soared to around 40 percent in May 2023.
Last month, however, inflation picked up to 3.5 percent, above the finance ministry’s projection of up to 2 percent, partly due to the fading of the year-go base effects. The SBP expects average inflation between 5.5 percent and 7.5 percent for the fiscal year ending June.
The central bank paused its easing cycle in March after cumulative cuts of 1,000 basis points from a record high of 22 percent, and resumed it with a 100-basis-point reduction in May.
The policy meeting follows the release a tight annual budget, which saw Pakistan raise defense spending by 20 percent but overall expenditure was reduced by 7 percent, with GDP growth forecast at 4.2 percent.
Pakistan says its $350 billion economy has stabilized under a $7 billion IMF bailout that had helped it staved a default threat.
Some analysts are skeptical of the government’s ability to reach the growth target amid fiscal and external challenges.
Abdul Azeem, head of research at Al Habib Capital Markets, which forecast a 50-bp cut, said a lower rate could “support the GDP target of 4.2 percent and reduce the debt financing burden.”
Separately, long-dated dollar bonds for Israel, Egypt and Pakistan slipped on Friday, and Israel’s shekel tumbled following the Iran air strikes.
The shekel was 2 percent weaker by 0713 GMT standing at 3.63 to the dollar after touching 6.793 in overnight trade, its softest in seven weeks.
Israel’s bond maturing in 2140 shed 1.45 cents, to be bid at 65.61 cents on the dollar, while Egypt’s 2049 bond fell nearly 2 cents to be bid at 77.36. Pakistan’s 2031 bond fell just over 1 cent to be bid at 78.61 cents.
Pakistan condemns ‘illegitimate aggression’ as Israel launches widescale strikes on Iran

- Israel hits nuclear facilities, ballistic missile factories and military commanders in operation to prevent Tehran from building atomic weapon
- 200 Israeli jets took part in strikes and hit over 100 targets, military spokesman says, Tehran launches 100 drones toward Israel in retaliation
ISLAMABAD: Pakistan on Friday condemned what it called Israel’s “unjustified and illegitimate aggression” against Iran after strikes targeted nuclear facilities, ballistic missile factories and military commanders as part of an operation to prevent Tehran from building an atomic weapon.
Israel launched strikes on Iran early Friday, with black smoke rising from around its main nuclear enrichment facility. Iran’s elite Revolutionary Guards corps said its top commander, Hossein Salami, was killed and state media reported the unit’s headquarters in Tehran had been hit. Several children had been killed in a strike on a residential area in the capital, it said.
The International Atomic Energy Agency said on Friday there was no increase in radiation levels at the Natanz nuclear site, citing information given by Iranian authorities.
Israeli military spokesman Brig. Gen. Effie Defrin said 200 Israeli fighter jets took part in the strikes, hitting more than 100 targets in Iran, which had launched about 100 drones toward Israeli territory in retaliation.
“Pakistan strongly condemns the unjustified and illegitimate aggression by Israel against the Islamic Republic of Iran,” the Pakistani foreign office said in a statement, warning that the escalation posed “a serious threat to regional peace and security.”
The foreign ministry said Israel had violated Iran’s sovereignty and said the attacks were “contrary to the UN Charter and fundamental principles of international law.”
“Iran has the right to self-defense under Article 51 of the UN Charter,” the statement added.
Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar described the Israeli strikes as a “brazen violation” of Iran’s sovereignty and said they “gravely undermine regional stability and international security.”
“Pakistan stands in solidarity with the government and the people of Iran,” Dar wrote on X.
Dar also said the embassy had set up a 24/7 Crisis Management Unit at the foreign ministry “to ensure safety & security of our nationals / pilgrims in Iran.”
Pakistani Prime Minister Shehbaz Sharif called on the international community and the United Nations to “take urgent steps to prevent any further escalation that could imperil regional and global peace.”
Israeli military spokesperson Defrin said all air defense systems had been activated in response to Iran’s retaliation and the country expected “difficult hours ahead.”
In Washington, the US administration said it was not involved in the Israeli operation, which raises the risk of a fresh escalation in tensions in the Middle East, a major oil producing region.
“Israel took unilateral action against Iran,” US Secretary of State Marco Rubio said in a statement released by the White House. “Our top priority is protecting American forces in the region.”
Saudi Arabia’s foreign ministry also condemned the Israeli strikes.
“The Kingdom condemns these heinous attacks and affirms that the international community and the Security Council bear a great responsibility to immediately halt this aggression,” the Saudi statement said.
Airlines cleared out of the airspace over Israel, Iran and Iraq and Jordan on Friday after the Israelis strikes, Flightradar24 data showed, with carriers scrambling to divert and cancel flights to keep passengers and crew safe.
Iran closed its airspace and Tel Aviv’s Ben Gurion Airport was closed until further notice.
Israeli military Chief of Staff Eyal Zamir said tens of thousands of soldiers had been called up and “prepared across all borders.”
“We are amidst a historic campaign unlike any other. This is a critical operation to prevent an existential threat, by an enemy who is intent on destroying us,” he said.
With inputs from AP and Reuters
Pakistan, other nuclear states together spent $100 billion on weapons in 2024 — report

- US spent $56.8 billion in 2024, followed by China at $12.5 billion, says International Campaign to Abolish Nuclear Weapons
- ICAN says level of nuclear weapons spending in 2024 by these nine nations could have paid UN budget almost 28 times over
GENEVA: Nuclear-armed states spent more than $100 billion on their atomic arsenals last year, the International Campaign to Abolish Nuclear Weapons said Friday, lamenting the lack of democratic oversight of such spending.
ICAN said Britain, China, France, India, Israel, North Korea, Pakistan, Russia and the United States together spent nearly $10 billion more than in 2023.
The United States spent $56.8 billion in 2024, followed by China at $12.5 billion and Britain at $10.4 billion, ICAN said in its flagship annual report.
Geneva-based ICAN won the 2017 Nobel Peace Prize for its key role in drafting the Treaty on the Prohibition of Nuclear Weapons, which took effect in 2021.
Some 69 countries have ratified it to date, four more have directly acceded to the treaty and another 25 have signed it, although none of the nuclear weapons states have come on board.
This year’s report looked at the costs incurred by the countries that host other states’ nuclear weapons.
It said such costs are largely unknown to citizens and legislators alike, thereby avoiding democratic scrutiny.
Although not officially confirmed, the report said Belgium, Germany, Italy, the Netherlands and Turkiye were hosting US nuclear weapons, citing experts.
Meanwhile Russia claims it has nuclear weapons stationed in Belarus, but some experts are unsure, it added.
The report said there was “little public information” about the costs associated with hosting US nuclear weapons in NATO European countries, citing the cost of facility security, nuclear-capable aircraft and preparation to use such weapons.
“Each NATO nuclear-sharing arrangement is governed by secret agreements,” the report said.
“It’s an affront to democracy that citizens and lawmakers are not allowed to know that nuclear weapons from other countries are based on their soil or how much of their taxes is being spent on them,” said the report’s co-author Alicia Sanders-Zakre.
Eight countries openly possess nuclear weapons: the United States, Russia, Britain, France, China, India, Pakistan and North Korea.
Israel is widely assumed to have nuclear weapons, although it has never officially acknowledged this.
ICAN said the level of nuclear weapons spending in 2024 by these nine nations could have paid the UN budget almost 28 times over.
“The problem of nuclear weapons is one that can be solved, and doing so means understanding the vested interests fiercely defending the option for nine countries to indiscriminately murder civilians,” said ICAN’s program coordinator Susi Snyder.
The private sector earned at least $42.5 billion from their nuclear weapons contracts in 2024 alone, the report said.
There are at least $463 billion in ongoing nuclear weapons contracts, some of which do not expire for decades, and last year, at least $20 billion in new nuclear weapon contracts were awarded, it added.
“Many of the companies that benefited from this largesse invested heavily in lobbying governments, spending $128 million on those efforts in the United States and France, the two countries for which data is available,” ICAN said.
Standard nuclear doctrine — developed during the Cold War between superpowers the United States and the Soviet Union — is based on the assumption that such weapons will never have to be used because their impact is so devastating, and because nuclear retaliation would probably bring similar destruction on the original attacker.
Pakistan’s Sindh, Khyber Pakhtunkhwa provinces to present budgets 2025-26 today

- Pakistan’s federal government announced its budget 2025-26, with total outlay of $62 billion, on Tuesday
- Sindh CM Murad Ali Shah, who also holds finance portfolio, will present budget at 3:00 pm, says state media
KARACHI: Pakistan’s Sindh and Khyber Pakhtunkhwa (KP) provinces will present their annual budgets for the fiscal year 2025-26 today, Friday, in their respective assemblies, state-run media reported.
The development will take place a few days after Pakistan’s central government announced the federal budget for the fiscal year 2025-26 with a total outlay of Rs7.57 trillion ($62 billion). Finance Minister Muhammad Aurangzeb presented the budget in parliament on Tuesday, which allocates Rs2.55 trillion ($9 billion) for defense spending in FY26, compared to Rs2.12 trillion in the fiscal year ending this month.
Pakistan’s provincial governments announce their annual budgets typically a few days after the federal government. KP Minister for Finance Aftab Alam Afridi will present the budget in the KP Assembly at 3:00 pm, state broadcaster Radio Pakistan reported.
“In Sindh, Chief Minister Syed Murad Ali Shah, who also holds the portfolio of finance will present the budget in Sindh assembly in Karachi at three in the afternoon,” the report said.
The state media said Pakistan’s most populous Punjab province will announce its budget on Monday.
The federal government announced a significant income tax relief for the salaried class in its budget earlier this week, aiming to ease the burden on people amid high inflation and economic uncertainty. The income tax rate for individuals earning between Rs600,000 and Rs1.2 million ($2,128–$4,255) annually would be cut from 5 percent to 2.5 percent.
“For those earning up to Rs22,000,000 [$7,788], the tax rate has been proposed at 11 percent instead of 15 percent. Similarly, those who earn a higher salary, there is a proposition of tax reduction,” Aurangzeb said.
“For those who are earning between Rs22,000,000 [$7,788] up to Rs32,000,000 [$11,328], the tax rate has been proposed to be reduced from 25 percent to 23 percent,” he added.
For high-income earners making over Rs10 million ($35,460) annually, a 1 percent reduction in the additional surcharge has been recommended to help curb the ongoing brain drain, the minister said.
BUDGET 2025-26 HIGHLIGHTS:
GDP/DEFICIT
* GDP growth projected to be 4.2 percent
* Nominal GDP seen at 129.57 trillion rupees
* Fiscal deficit expected to be 3.9 percent of GDP
* Targets primary surplus of 2.4 percent of GDP
INFLATION
* Targets inflation at 7.5 percent
EXPENDITURE
* Total spending seen at 17.57 trillion rupees
* Defense expenditure of 2.55 trillion rupees targeted
* Interest payments projected at 8.21 trillion rupees
REVENUE
* Total gross revenue of 19.28 trillion rupees targeted
* Targets total tax revenue of 14.1 trillion rupees
* Aiming for net external receipts of 106 billion rupees
($1 = 282.0000 Pakistani rupees)