Pakistan’s current account balance significantly improved in February 2025, recording a minimal deficit of $12 million, a substantial decrease from the $399 million deficit reported in January 2025.

This improvement is primarily attributed to robust remittance inflows, which reached $3.1 billion during the month.

Year-to-Date Performance:

For the period spanning July 2024 to February 2025 (8MFY25), Pakistan achieved a current account surplus of $0.7 billion, marking a notable turnaround from the $1.7 billion deficit recorded during the same period in the previous fiscal year.

Recent Trends:

  • January 2025: The current account posted a deficit of $420 million, ending a three-month streak of surpluses. This shift was largely due to a surge in imports, which widened the trade gap.
  • December 2024: The country recorded a surplus of $474 million, reflecting positive trends in the balance of payments during that period.

Implications:

The substantial improvement in February’s current account balance underscores the effectiveness of recent economic measures aimed at enhancing external balances. Sustained remittance inflows and prudent fiscal policies have been pivotal in achieving this positive outcome.