Islamabad: Pakistan’s current account recorded a USD 0.7 billion surplus in the July-February period of fiscal year 2025 (FY25), marking a significant improvement from the USD 1.7 billion deficit reported during the same period last year.
According to the State Bank of Pakistan (SBP), this turnaround is driven by a narrowing trade deficit, strong remittance inflows, and controlled import growth.
Key Drivers of the Surplus Exports Growth: Exports increased by 7.2%, reaching USD 21.8 billion, boosting foreign exchange earnings. Controlled Imports: Imports grew at a slower pace, up 11.4% to USD 38.3 billion, due to government measures to curb non-essential imports. Surging Remittances: Worker remittances rose to USD 23.97 billion, up from USD 18.08 billion last year, providing much-needed support to the external account. Reduced Trade Deficit: The goods and services trade deficit narrowed to USD 18.8 billion, improving from USD 24.6 billion in the previous year. While debt servicing led to a slight widening in the primary income deficit, Pakistan’s external position remained stable, supported by remittances and financial assistance.
Challenges & Outlook Despite the surplus, the financial account recorded a net borrowing of USD 401 million, highlighting ongoing challenges in attracting consistent foreign investment. Policymakers are expected to focus on addressing trade imbalances and diversifying the economy to sustain long-term stability.
The current account surplus provides much-needed fiscal relief, strengthening Pakistan’s position as it moves towards economic stabilization and external resilience.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
