In a significant turnaround for the country’s external financial position, Pakistan recorded a current account surplus of $2.1 billion for the fiscal year 2024–25 (FY25), according to official data released by the State Bank of Pakistan (SBP) on Friday. This marks the first time in 14 years that the country has ended a fiscal year with a surplus, representing a notable shift from persistent deficits that have historically weighed on Pakistan’s economic stability.
The surplus in FY25 is also the highest Pakistan has registered since fiscal year 2002–03, underscoring a rare moment of financial respite for the economy. Market analysts have credited this achievement to a combination of moderate export growth and a substantial rise in remittance inflows from overseas Pakistanis.
According to brokerage house Arif Habib Limited (AHL), this surplus is not just statistically significant but also symbolically important for a country that has frequently been navigating foreign exchange shortfalls, International Monetary Fund (IMF) negotiations, and current account imbalances.
By contrast, Pakistan ended FY24 with a current account deficit of $2 billion, making the swing to a $2.1 billion surplus within a year all the more remarkable. For the month of June 2025 alone, the country posted a surplus of $328 million, compared to a deficit of $500 million in June 2024 and a $84 million surplus recorded in May 2025.
The primary driver of this positive shift has been remittances, which rose by over 25 percent year-on-year during FY25. Pakistani workers abroad sent more money back home, helping to ease the balance of payments and inject much-needed foreign exchange liquidity into the financial system.
Exports during the fiscal year showed a modest uptick but were not the central factor in the overall surplus. Imports remained under tight control due to prudent monetary and fiscal policies, allowing for a relatively stable trade balance and further contributing to the improvement in current account figures.
The SBP’s approach toward tightening liquidity and closely managing foreign exchange outflows has also played a key role in stabilizing the external account. Moreover, the controlled import environment and focus on curbing non-essential imports provided some insulation against global price shocks, especially in the energy and commodity markets.
With the country’s foreign exchange reserves still under pressure and external debt repayments looming, the surplus provides temporary breathing space. It also strengthens Pakistan’s position in ongoing and future discussions with international lenders and development partners.
As the government prepares its medium-term macroeconomic framework, the FY25 current account surplus is expected to serve as a positive marker, both domestically and internationally. However, economists warn that sustaining such performance will require ongoing policy discipline, improved export competitiveness, and consistent remittance flows.
While challenges remain, the current account surplus is a rare highlight in Pakistan’s economic narrative—one that signals cautious optimism amid broader structural reform efforts.