Pakistan posts record monthly current account surplus

KARACHI: Pakistan recorded one of its highest-ever monthly current account surpluses in March 2025, driven by a sharp increase in exports and resilient remittance inflows, the State Bank of Pakistan (SBP) reported on Thursday.

The country posted a surplus of $1.19 billion in March, up 229 per cent compared to $363 million in the same month last year. This marks a significant turnaround in the country’s external balance position and reflects a broader trend of improving fundamentals.

Advisor to Finance Minister Khurram Shahzad said in a post to his official X account that with the record March surplus, Pakistan’s cumulative current account balance for the first nine months of the fiscal year (July 2024 to March 2025) has swung to a surplus of $1.86 billion — a stark contrast to the $1.65 billion deficit recorded in the same period of FY24.

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Exports rose to $3.51 billion in March, an increase of 8.7 per cent year-on-year and 6 per cent month-on-month, as global demand for textiles and value-added goods picked up. Imports also increased 8 per cent year-on-year to $5.92 billion, but edged down 1.9 per cent month-on-month.

While the trade deficit in goods and services widened 7 per cent year-on-year in March, it narrowed by 11.5 per cent compared to February, supported by softer oil prices and easing import pressures.

For the first nine months of FY25, Pakistan’s total exports reached $30.9 billion, up 8.1 per cent from a year earlier. Imports rose 10.7 per cent to $51.9 billion, taking the cumulative trade deficit to $21.1 billion — an increase of nearly 15 per cent year-on-year.

However, strong remittance inflows, aided by stable exchange rates and regulatory reforms, have more than offset the trade gap, helping the current account swing into surplus. Analysts believe the external account may remain in surplus through June and potentially continue into FY26, which could further boost investor confidence and support macroeconomic stability.

The SBP said lower global oil prices and continued remittance strength have played a key role in containing external financing needs and supporting foreign exchange reserves.