Overcoming its external balance challenges, Pakistan recorded a strong current account surplus of $2.1 billion for the fiscal year 2024–25, according to data released by the State Bank of Pakistan (SBP). The data indicates that the current account improved from a $2.1 billion deficit in FY 2023-24 to a surplus of $2.1 billion.

 

According to reports, the current account surplus is the highest Pakistan has experienced in 22 years. Taking to social media, adviser to the Finance Minister Khurram Schehzad outlined how Pakistan’s current account surplus exceeded $2.1 billion after witnessing a $328 million surplus in June 2025.

 

It merits a mention that Pakistan achieved this feat mainly as a result of robust remittance inflows during FY 2024-25. Historically, the country has run large current account deficits, largely driven by the balance of trade component in the current account calculation. 

 

Data from the SBP indicates that Pakistan was unable to generate a trade surplus during FY 2024–25, with the largest monthly trade deficit recorded in May 2025 at a staggering $3.17 billion.

 

The Finance Minister’s adviser confirmed that remittance inflows played a key role in achieving the current account surplus, outlining how remittances ballooned to a staggering $38 billion during FY 2024-25.

 

The data suggests that remittance inflows logged a 27 percent growth rate on a year-on-year (YoY) basis. Prime Minister Shehbaz Sharif expressed content over the developments surrounding the current account surplus, calling them “very welcome”.

 

The high influx of remittances has allowed Pakistan to improve its foreign exchange reserves, with reports suggesting that reserves have grown to a whopping $19 billion. While the Prime Minister has lauded an improvement in exports as having also contributed to the surge in the current account balance, data reveals that the balance of trade worsened significantly during the second half of FY 2024-25.

 

However, some sectors have witnessed a boost in export earnings, namely the textile and IT sectors. Experts believe that Pakistan must significantly boost its export earnings as imports persistently exceed exports to equalise the balance of trade.

 

Despite a negative balance of trade value, reports suggest that remittances could serve to fuel the current account surplus as throngs of Pakistani citizens head abroad for better economic prospects. While this could exacerbate the domestic brain drain issue, tackling the issue could dampen the influx of much-needed inflows.