Pakistan’s current account posts $2.1bn surplus in FY25

Pakistan’s current account (C/A) posted a massive surplus of $2.1 billion during the fiscal year (FY) 2024-25, a sharp contrast against $2.07 billion deficit recorded in the FY24, data released on Friday by the State Bank of Pakistan (SBP) showed.

“This is the first current account surplus in 14 years,” said AKD Securities.

The surplus came on the back of a significant increase in remittance inflows during FY25, which clocked in at $38.3 billion, reflecting an increase of 27% on a yearly basis.

“Major factor was a significant increase in workers’ remittances,” Samiullah Tariq, Head of Research at Pak Kuwait Investment Company, told Business Recorder.

Meanwhile, similar sentiments were echoed by Waqas Ghani, Head of Research at JS Global. “Remittances outpaced the trade deficit, while the services deficit also stayed contained,” he told Business Recorder.

Meanwhile, the country’s C/A registered a surplus of $328 million in June 2025, against a deficit of $84 million (revised) last month and a deficit of $500 million in June 2024.

The current account surplus comes on the back of a significant increase in exports during the period.

Breakdown

In June 2025, the country’s total export of goods and services amounted to $3.33 billion, up 8% as compared to $3.09 billion in the same month of the previous year.

Meanwhile, total imports clocked in at $5.84 billion during June 2025, an increase of 1% on a yearly basis, according to SBP data.

Workers’ remittances clocked in at $3.41 billion in June 2025, an increase of over 8% as compared to the previous year.

Low economic growth, along with high inflation, has helped curtail Pakistan’s current account deficit, with an increase in exports also helping the cause. A high interest rate, which has declined in recent months, and some restrictions on imports have also aided the policymakers’ objective of a narrower current account deficit.