Pakistan’s Current Account Shows $1.2 Billion Surplus in March 2025

The State Bank of Pakistan (SBP) revealed on Thursday that Pakistan’s current account recorded a surplus of $1.2 billion in March 2025.

According to Topline Securities, this March surplus represents an all-time high for a single month. It contrasts with a $363 million surplus during the corresponding period last year and a $97 million shortfall in February 2025.

The cumulative surplus for the first nine months of FY25 now amounts to $1.86 billion, a substantial turnaround from the $1.65 billion deficit observed during the same timeframe in the previous fiscal year.

Topline Securities noted that the previous peak for the highest monthly surplus was $981 million, achieved in August 2012.

Increase in Remittances Underpins Improvement

The enhancement was largely driven by a 37% year-over-year increase in remittances, soaring to $4.1 billion in March. This figure also signifies a 30% increase compared to February.

Topline attributed the surge to elements such as seasonal inflows related to Eid/Ramadan, an increase in worker migration, more efficient routing through formal channels, and attractive incentives offered by financial institutions. Subsequently, the central bank has adjusted its full-year remittance projection upward from $36 billion to $38 billion.

Other Key Factors

The services deficit witnessed a monthly narrowing to $226 million, reflecting a 13% decrease from February. However, it remains 14% higher than the previous year. The primary income deficit expanded to $657 million, marking an 11% year-over-year increase.

Exports of goods experienced a 10% year-over-year rise, reaching $2.77 billion in March, while imports increased by 8% to $4.95 billion.

Topline anticipates the current account to maintain a surplus for the rest of FY25, forecasting a full-year surplus of $1.24 billion, which is equivalent to 0.3% of GDP.