KARACHI: Pakistan’s current account posted a record all-time high monthly surplus of $1.2 billion in March 2025, fueled by historic inflows of home remittances, according to data released by the State Bank of Pakistan (SBP) on Thursday.
The surplus marks a 229 percent increase in March 2025 compared to the same period (March 2024) last year, when the current account recorded a surplus of $363 million. On a month-on-month basis, the March 2025 statistics also significantly outperformed February 2025’s deficit of $97 million, reflecting a sharp turnaround in the country’s external position.
According to SBP, cumulatively the country’s current account posted a surplus of $1.859 billion in the first nine months (July-March) of this fiscal year (FY25) compared to a deficit of $1.652 billion in the same period of last fiscal year (FY24).
Analysts noted that the March surplus was largely supported by record-high remittance inflows of $4.1 billion, the highest ever in a single month. These inflows played a key role in offsetting trade-related outflows and strengthening the overall external account.
“This is a highly encouraging development for Pakistan’s economy,” said Analysts said, adding that sustained improvement in the current account will help ease pressure on the rupee, stabilize the balance of payments, and contribute to the accumulation of foreign exchange reserves.
They echoed the central bank’s assessment, stating that the surplus provides much-needed breathing space for the economy amid global uncertainties. “With remittances holding strong and oil import bills relatively stable, this surplus can reduce reliance on external borrowing, besides supporting the country’s foreign exchange reserves”, they added.
SBP Governor Jameel Ahmed has already predicted that the country’s foreign exchange reserves will boost with the higher home remittances inflows. “Reserves held by the SBP are projected to reach the $14 billion mark by the end of June 2025 as against previous estimates of $ 13 billion,” Governor SBP said.
The detailed analysis reveals that Pakistan’s goods trade deficit widened by 15 percent, reaching $18.73 billion during the first nine months of the current fiscal year (FY25), compared to $16.47 billion in the same period of last fiscal year.
The increase in the deficit was driven by a rise in imports. Imports grew from $39 billion to $43.39 billion, while exports increased from $22.89 billion to $24.66 billion, reflecting a moderate improvement in export performance amid stronger domestic demand.
In the services sector, Pakistan recorded a deficit of $2.32 billion, with exports totaling $6.2 billion against imports of $8.5 billion during the review period.
Pakistan has been grappling with a persistent financial crisis over the past two years, requiring significant foreign inflows to meet external debt obligations. As part of its stabilization efforts, the country entered into a $7 billion Extended Fund Facility (EFF) program with the International Monetary Fund (IMF) to support its foreign exchange reserves and restore market confidence.
Encouragingly, the country’s external sector is now showing signs of recovery, supported by favorable policy measures and improving macroeconomic fundamentals, including record remittances and easing import pressures.
Copyright Business Recorder, 2025
