Karachi, February 18, 2025 – Pakistan recorded a current account surplus of $682 million during the first seven months of the fiscal year 2024-25 (July–January), according to data released by the State Bank of Pakistan (SBP) on Tuesday.
This development marks a significant turnaround from the same period last year when the country posted a substantial current account deficit of $1.801 billion.
The positive shift in the current account reflects a combination of improved export performance, robust remittance inflows, and prudent import management. According to SBP data, Pakistan’s total exports of goods and services reached $23.92 billion during the period. Meanwhile, imports were recorded at $39.99 billion, indicating a carefully balanced approach toward external trade.
A significant contributor to the current account surplus has been the remarkable growth in worker remittances. During the July–January period, remittance inflows surged to $20.85 billion, marking a 32% increase compared to $15.83 billion in the corresponding period of the previous fiscal year. These inflows have provided much-needed support to Pakistan’s current account, easing pressure on foreign exchange reserves.
The current account is a crucial indicator for Pakistan’s import-dependent economy, as it reflects the balance of external transactions, including trade, services, and remittances. A widening current account deficit typically exerts downward pressure on the exchange rate and depletes foreign reserves, whereas a surplus helps stabilize the currency and bolster economic confidence.
Despite the overall surplus for the seven-month period, Pakistan recorded a current account deficit of $420 million in January 2025. This marks the first deficit since July 2024 and represents a 4% increase compared to the $404 million deficit reported in January 2024. The SBP attributed this shortfall to a rise in import payments during the month.
In January 2025, Pakistan’s exports of goods and services stood at $3.631 billion, reflecting an 8% year-on-year increase from $3.362 billion. Imports, however, grew by 15% to $6.461 billion compared to the same month last year, contributing to the monthly current account deficit. Worker remittances also showed positive momentum, climbing to $3.002 billion, a 25% increase year-on-year.
The improvement in the overall current account balance has been supported by low economic growth, high inflation, and policy measures such as elevated interest rates and restrictions on non-essential imports. Policymakers remain cautiously optimistic, emphasizing that continued growth in exports and remittances will be essential for maintaining a stable current account in the months ahead.
