Pakistan’s Current Account Records Deficit in May 2025

State Bank of Pakistan (SBP) data revealed a current account (C/A) deficit of $103 million for May 2025, a shift from the $47 million surplus (revised) reported the previous month.

Year-on-year (YoY), the C/A experienced a 56% reduction compared to the $235 million deficit in May of the prior year.

The current account shortfall is attributed to a notable surge in imports and a contraction in exports during the assessed timeframe.

Waqas Ghani, Head of Research at JS Global, commented, “The current account showed a deficit of $103 million, reversing the positive trend of preceding months. This downturn primarily stemmed from a larger trade deficit, which escalated to $3 billion, marking a 52% YoY increase and a 16% rise from April 2025.”

Cumulatively, Pakistan’s current account reflects a $1.81 billion surplus for the initial eleven months of the current fiscal year (11MFY25). This is a sharp contrast to the $1.57 billion deficit recorded across the equivalent period last fiscal year.

Detailed Analysis

In May 2025, the nation’s total exports of goods and services totaled $3.15 billion, which is a 15% decrease from the $3.71 billion recorded in the corresponding month of the previous year.

Conversely, total imports reached $6.36 billion in May 2025, indicating a 7% increase year-on-year, according to SBP statistics.

Workers’ remittances amounted to $3.69 billion in May 2025, demonstrating a surge of over 13% compared to the preceding year.

Restrained economic expansion, coupled with elevated inflation, has played a role in limiting Pakistan’s current account deficit. Increased exports have also contributed positively. Elevated interest rates, which have moderated recently, alongside certain import restrictions, have further assisted policymakers in their objective to narrow the current account deficit.