In a significant turnaround, Pakistan recorded a current account surplus of $2.1 billion in the fiscal year 2024-25, the first annual surplus since FY15, according to figures released by the State Bank of Pakistan (SBP).
The positive balance marks a sharp contrast to the $3.3 billion deficit recorded in FY24, reflecting the government’s efforts to curb imports, boost remittances, and stabilize macroeconomic fundamentals.
Key Drivers Behind the Surplus
According to the SBP data and official statements:
- Imports were tightly controlled, especially non-essential items, due to fiscal tightening.
- Remittances surged, particularly from the Middle East and Europe, following government initiatives.
- A modest growth in exports and services helped narrow the trade gap.
SBP noted that June 2025 alone recorded a surplus of $500 million, up from a $504 million deficit in the same month last year.
“This turnaround is evidence of Pakistan’s improved external account discipline and recovery momentum,” said an SBP spokesperson.
Economic Impact and Outlook
Economists suggest that the surplus:
- Will relieve pressure on the rupee
- Boost investor confidence and credit ratings
- Support Pakistan’s case in ongoing IMF reviews
- Allow greater monetary space for development spending
However, some analysts warned that the surplus came at the cost of restricted industrial imports, and called for structural export growth to sustain the gains.
Fiscal Context
- Pakistan’s foreign exchange reserves have also crossed the $10 billion mark for the first time in 18 months.
- The government has been under pressure to meet targets under the IMF Extended Fund Facility (EFF).
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