Karachi, May 16, 2025 – Pakistan has recorded a notable turnaround in its external sector by posting a current account surplus of $1.88 billion during the first ten months (July to April) of the current fiscal year 2024-25, according to the State Bank of Pakistan (SBP).
This marks a significant improvement from a current account deficit of $1.34 billion reported during the same period in the previous fiscal year.
The surplus reflects the strengthening of the country’s external position, mainly supported by robust inflows of workers’ remittances and a moderate rise in export earnings. Workers’ remittances reached an impressive $31.2 billion in the first ten months of FY25, up from $23.9 billion during the same period last year, reflecting a healthy growth of 31%. This surge in remittances has played a critical role in stabilizing the current account and easing pressure on the foreign exchange reserves.
In parallel, exports recorded a growth of 6.25%, rising to $26.86 billion during July–April FY25 compared to $25.29 billion in the corresponding period of FY24, according to data from the Pakistan Bureau of Statistics (PBS). Despite the positive export momentum, the trade deficit widened by 8.81% to $21.35 billion due to increased import activity.
Imports grew by 7.37% year-on-year, totaling $48.21 billion in the first ten months of the current fiscal year, up from $44.9 billion in the same period last year. The increase in imports, while boosting industrial activity and consumer demand, also exerted pressure on the trade balance.
Nevertheless, the balance of payments continues to reflect resilience. In April 2025 alone, the country posted a modest current account surplus of $12 million, compared to a surplus of $315 million in April 2024. While this monthly figure is lower, it underscores a sustained positive trend for the current account overall.
Looking ahead, Pakistan anticipates maintaining a current account surplus by the end of FY25. This would mark a significant shift from the deficit of $2.07 billion in FY24 and a larger $3.27 billion deficit in FY23. With the current momentum, policymakers are optimistic about sustaining external sector stability.
