Karachi, March 17, 2025 – Pakistan’s current account remained in surplus, recording an impressive $691 million during the first eight months (July–February) of the ongoing fiscal year 2024-25, according to data released by the State Bank of Pakistan (SBP) on Monday.
This marks a significant turnaround from the current account deficit of $1.73 billion reported during the corresponding period of the previous fiscal year.
The sustained surplus in Pakistan’s current account can largely be attributed to a robust increase in workers’ remittances and an encouraging rise in export earnings. The steady growth in these two key economic indicators has helped offset the pressures exerted by the country’s rising import bill.
According to figures provided by the Pakistan Bureau of Statistics (PBS), the country’s exports climbed by 8.42%, reaching $22.07 billion during the first eight months of FY25, compared to $20.36 billion recorded in the same period last fiscal year. Despite this positive development, Pakistan’s import bill also witnessed an increase of 7.60%, rising to $37.88 billion during July–February 2024-25 from $35.20 billion in the corresponding period of the last fiscal year.
As a result of the higher import bill, Pakistan’s trade deficit widened by 6.48% to $15.80 billion during the first eight months of the current fiscal year, up from $14.84 billion recorded in the same period last year. However, the strong performance of the current account helped mitigate the impact of the growing trade deficit.
A major contributing factor to the sustained current account surplus has been the remarkable growth in workers’ remittances, which surged by 32.5% to reach $24 billion during the first eight months of FY25, compared to $18.1 billion in the previous fiscal year. The surge in remittance inflows has provided much-needed support to the economy, improving foreign exchange reserves and stabilizing the balance of payments.
In February 2025 alone, Pakistan’s current account recorded a marginal deficit of $12 million, compared to a surplus of $71 million in February 2024 and a more substantial deficit of $399 million in January 2025. The monthly current account deficit in February 2025 was primarily driven by increased imports and a slight dip in exports. However, the record-breaking remittance inflows of $3.1 billion during the month significantly offset a larger deficit in the current account.
Moving forward, policymakers will need to maintain a delicate balance between boosting exports and managing imports to ensure that Pakistan’s current account remains in a favorable position. The continued rise in remittances and export earnings will be crucial in sustaining the current account surplus and ensuring economic stability.