Pakistan Records Current Account Surplus After 14 Years

Pakistan’s current account experienced a significant turnaround in fiscal year 2024-25, achieving a surplus of $2.1 billion. This is a notable shift from the $2.07 billion deficit in FY24, according to data released by the State Bank of Pakistan (SBP) on Friday.

According to AKD Securities, this marks the first instance of a current account surplus in 14 years for the nation.

The surplus was largely driven by a substantial surge in remittance inflows during FY25, reaching $38.3 billion, which represents a 27% increase year-over-year.

Samiullah Tariq, Head of Research at Pak Kuwait Investment Company, noted that the primary factor contributing to the surplus was the considerable increase in remittances from overseas workers.

In June 2025, the current account showed a surplus of $328 million, compared to a revised deficit of $84 million in the preceding month and a $500 million deficit in June 2024.

The improved current account balance is also attributed to a marked increase in exports throughout the period.

Detailed Analysis

In June 2025, the nation’s total exports of goods and services amounted to $3.33 billion, reflecting an 8% increase compared to $3.09 billion in the corresponding month last year.

Meanwhile, total imports reached $5.84 billion in June 2025, showing a 1% increase on an annual basis, as per SBP statistics.

Remittances from workers abroad totaled $3.41 billion in June 2025, indicating an increase of over 8% compared to the prior year.

Moderate economic expansion, coupled with elevated inflation, has played a role in reducing Pakistan’s current account deficit, aided by increased exports. Elevated interest rates, which have been adjusted downward recently, and specific import restrictions have further supported policymakers in their objective to narrow the current account deficit.