Karachi, January 17, 2025 – Pakistan has reached a remarkable milestone, posting a record $1.21 billion current account (CA) surplus for the first half of fiscal year 2024-25 (January – December 2024), according to the State Bank of Pakistan (SBP). This achievement marks a significant turnaround from the $1.40 billion deficit recorded during the same period in the previous fiscal year.
The substantial surplus for the first half of FY25 stands as a testament to Pakistan’s improving external balance and economic resilience, particularly after a period of persistent deficits. In December 2024, Pakistan recorded a current account surplus of $582 million, down slightly from the $684 million surplus in November 2024. However, the data reveals a noteworthy growth trajectory, with the surplus rising by $266 million compared to the previous month, driven by better-than-expected figures. Analysts at Topline Securities noted that adjustments in the data for earlier months have contributed to this increase, with a revision of $316 million for months including July, August, September, and November 2024.
A significant portion of the revision is attributed to changes in the services deficit, which analysts identified as a key factor in the positive shift. The overall trade deficit reported by the SBP was also notably lower in December 2024, showing a reduction of 29% compared to the Pakistan Bureau of Statistics (PBS) figures, and considerably below the historic average of 10%.
Further insight into Pakistan’s economic performance in December reveals a 12% month-on-month (MoM) decline in the primary deficit, bringing it down to $743 million. This reduction defies the usual upward trend typically observed in December over the last four to five years, suggesting improved financial management and structural adjustments. Meanwhile, the secondary balance saw a positive development, rising by 6% MoM to reach $3.3 billion, bolstered by a 6% MoM increase in remittances, which totaled $3.08 billion.
This current account surplus is a highly encouraging indicator for Pakistan’s economic stability, showcasing the country’s ability to manage its external obligations more effectively. The figures reflect a broader positive trend that signals fiscal health and resilience despite global economic pressures.
