In a significant economic breakthrough, Pakistan recorded a current account surplus of $2.1 billion in fiscal year 2024–25, marking its first annual surplus since 2010–11, according to data released by the State Bank of Pakistan (SBP) on Friday.
This impressive turnaround comes after a $2.07 billion deficit in FY24. The SBP confirmed the development on social media platform X (formerly Twitter), stating:
“Current account balance recorded a surplus of $2.1 billion during FY25 compared to a deficit of $2.1 billion during FY24.”
The momentum was evident in the latest monthly figures as well. In June 2025, the current account showed a $328 million surplus, a notable shift from the $84 million deficit in May and $500 million deficit in June 2024.
Key Drivers Behind the Surplus:
- Remittances surged by 27%, reaching a record $38.3 billion, driven by increased manpower exports, improved formal remittance channels, and a narrower gap between official and unofficial exchange rates.
- Textile exports rose 7.4% year-on-year to $17.89 billion.
- Foreign direct investment (FDI) increased by 5% to $2.5 billion.
- IT exports climbed 18% to $3.8 billion, with June alone contributing $338 million, a 14% year-on-year rise and 3% growth from May.
- The services deficit declined by 16%, easing external pressure.
Experts credit the surplus to structural reforms, better exchange rate management, and effective policy incentives. However, they warn that the gains may be temporary, projecting a moderate deficit of $0.5–$1.5 billion (0.1–0.3% of GDP) in FY26 if import demand rises or global headwinds intensify.
Despite these cautions, the surplus has been widely hailed as a positive signal for the economy, boosting investor confidence and helping to stabilize the Pakistani rupee.
