KARACHI: Pakistan has reported a significant current account surplus of $944 million for the first five months (July to November) of the fiscal year 2024-25, according to balance of payment data released by the State Bank of Pakistan (SBP) on Tuesday.
This surplus marks a substantial improvement compared to the current account deficit of $1.68 billion recorded during the same period in the previous fiscal year. The turnaround is attributed to a combination of increased export earnings and moderated growth in import payments during the first five months of FY25.
Exports from Pakistan surged by 12.57%, reaching $13.69 billion during the July-November period of FY25, compared to $12.16 billion in the corresponding period of the last fiscal year. This growth reflects enhanced performance across key sectors, including textiles, agriculture, and information technology, driven by favorable market conditions and government incentives.
Meanwhile, the country’s import bill grew at a slower pace of 3.90%, totaling $22.34 billion during the same period, up from $21.50 billion in the previous fiscal year. This modest rise in imports indicates improved management of foreign exchange resources and reduced demand for non-essential goods.
As a result, Pakistan’s trade deficit contracted by 7.39% to $8.65 billion in the first five months of FY25, compared to $9.34 billion in the corresponding months of FY24. The narrowing of the trade gap has been a critical factor in achieving the current account surplus.
Another major contributor to the surplus has been the remarkable growth in remittance inflows. According to the SBP, workers’ remittances grew by 34% during July-November FY25, reaching $14.77 billion compared to $11.05 billion in the same period last fiscal year. This surge underscores the dedication of overseas Pakistanis and the effectiveness of initiatives aimed at encouraging remittances through formal channels.
Notably, Pakistan recorded a current account surplus of $729 million in November 2024 alone, further solidifying the positive trend. The sustained inflows from exports and remittances continue to strengthen the country’s external account position and provide a buffer against global economic challenges.
