Pakistan’s current account surplus shrinks to $12 million in April

ISLAMABAD: Pakistan posted a current account surplus of $12 million in April, a sharp drop from the $1.2 billion surplus recorded in March, according to data released by the State Bank of Pakistan.

The April surplus also marked a significant decline from the $315 million surplus seen in the same month a year earlier. However, on a cumulative basis, the current account remained in the black, posting a surplus of $1.88 billion during the first 10 months of the fiscal year through April (10MFY25), compared with a deficit of $1.34 billion in the same period last year.

Despite the surplus, Pakistan’s trade gap widened notably. The trade deficit in goods and services rose to $2.81 billion in April, up 38.6 per cent from a year earlier and 17.9 per cent higher than in March.

Exports in April rose just 1 per cent year-on-year to $3.33 billion, but fell 4.9 per cent compared to the previous month. Imports, meanwhile, jumped 15.3 per cent from a year earlier to $6.14 billion and rose 4.3 per cent on a monthly basis.

Over the 10-month period, exports reached $34.21 billion, up 7.3 per cent from $31.87 billion a year earlier. Imports grew at a faster pace, climbing 11.1 per cent to $58.05 billion, compared with $52.25 billion in 10MFY24. As a result, the cumulative trade deficit widened 17 per cent to $23.84 billion.

Remittances, a key source of foreign exchange, provided some support. In April, inflows from overseas Pakistanis totalled $3.18 billion, up 13.1 per cent from a year ago, although they fell 21.5 per cent from March. Cumulatively, remittances stood at $31.21 billion in 10MFY25, reflecting a strong 30.9 per cent increase from the $23.85 billion received in the same period last year.

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