Karachi, February 18, 2025 – Pakistan has recorded a remarkable current account surplus of $682 million during the first seven months of the fiscal year 2024-25 (July–January), according to recent data from the State Bank of Pakistan (SBP). This positive development marks a stark contrast to the same period in the previous year, when the country faced a significant current account deficit of $1.801 billion.
This shift from a deficit to a surplus in the current account is attributed to a combination of improved export performance, robust remittance inflows, and prudent management of imports. According to the SBP, Pakistan’s total exports of goods and services during this period reached $23.92 billion, while imports stood at $39.99 billion. The data suggests that a more cautious approach to managing external trade has helped in achieving a balanced trade position.
A key driver behind this surplus has been the exceptional growth in worker remittances. Between July and January, remittance inflows surged to $20.85 billion, reflecting a 32% year-on-year increase from $15.83 billion in the same period last year. This rise in remittances has provided vital support to the country’s current account, easing pressure on Pakistan’s foreign exchange reserves and contributing to overall economic stability.
The current account is an important indicator for Pakistan’s import-dependent economy, as it reflects the balance of external transactions, including trade, services, and remittances. A current account deficit often leads to downward pressure on the currency exchange rate and depletion of foreign reserves, whereas a surplus helps to stabilize the currency and boost investor confidence. Therefore, the surplus recorded during the first seven months of FY25 has provided some much-needed relief for Pakistan’s economic outlook.
However, despite the overall surplus for the seven-month period, Pakistan did record a current account deficit of $420 million in January 2025. This marked the first monthly deficit since July 2024 and represented a 4% increase compared to the $404 million deficit reported in January 2024. The SBP attributed this shortfall to an increase in import payments during the month, reflecting a rise in the demand for imported goods and services.
In January 2025, Pakistan’s exports of goods and services amounted to $3.631 billion, which showed an 8% year-on-year increase from $3.362 billion in January 2024. On the other hand, imports during the same month grew by 15%, reaching $6.461 billion compared to $5.615 billion in January 2024. The rise in imports, coupled with a moderate increase in export growth, contributed to the current account deficit for the month. Nonetheless, worker remittances continued their upward trajectory, reaching $3.002 billion in January, a 25% increase compared to the same month last year.
While the overall current account balance for the July–January period shows positive momentum, policymakers remain cautious about the future. The country’s low economic growth, high inflation, and measures such as elevated interest rates and restrictions on non-essential imports have all played a role in stabilizing the current account. However, government officials stress that maintaining a stable current account will depend on sustaining growth in exports and remittances in the coming months.
The ongoing positive performance in exports and remittances will be crucial for Pakistan as it aims to continue on this path of economic stabilization and growth. While the surplus achieved during the first seven months of FY25 is an encouraging sign, the country’s economic outlook will continue to depend on how these key factors evolve in the months ahead.