Pakistan’s Current Account Shows Slight Surplus in April 2025

According to data released by the State Bank of Pakistan (SBP) on Friday, Pakistan’s current account (C/A) recorded a marginal surplus of $12 million in April 2025. This is in comparison to a substantial surplus of $1.2 billion (revised) in the preceding month.

When viewed on a year-over-year (YoY) basis, the C/A experienced a 96% decrease from the $315 million surplus (revised) reported during the corresponding period last year.

The contraction in the current account surplus can be attributed to a notable surge in the import bill throughout the month.

Expert Analysis

Waqas Ghani, Head of Research at JS Global, commented that the current account surplus narrowed in April. This was due to a sharp decline in remittances, a vital source of inflows for Pakistan, alongside a wider trade deficit that put additional strain on the external balance.

Overall Fiscal Year Performance

Cumulatively, Pakistan’s current account shows a surplus of $1.88 billion for the initial ten months of the current fiscal year (10MFY25). This is a significant turnaround from the $1.34 billion deficit recorded during the same timeframe in the previous fiscal year.

Topline Securities stated in a note that they are maintaining their FY25 current account surplus target of $2.5-3 billion, which represents approximately 0.6-0.7% of GDP.

Detailed Breakdown for April 2025

  • Total exports of goods and services: $3.33 billion, a 1.2% increase from $3.29 billion in April of the prior year.
  • Total imports: $6.14 billion, reflecting a 15% increase year-on-year, based on SBP figures.
  • Workers’ remittances: $3.18 billion, marking an increase of over 13% compared to the previous year.

Reduced economic expansion, coupled with elevated inflation, has played a role in curbing Pakistan’s current account deficit. Moreover, increased exports have also contributed positively. The high interest rate environment, which has seen decreases lately, along with some import restrictions, has further supported policymakers in their aim to narrow the current account deficit.