Pakistan records annual current account surplus of $2.1bn: Official data

Pakistan recorded a current account surplus of $2.1 billion during the current fiscal year ending June 30, 2025, according to official data. Prime Minister Shehbaz Sharif hailed the development as a sign of an improving economy.

The country faced a perennial issue of balance of payment and periodically rushed to the International Monetary Fund (IMF) and other financial institutions to get monetary support.

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The latest data of the State Bank of Pakistan (SBP) on Friday (July 18, 2025) showed the current account surplus was recorded at $2.1 billion, compared to a deficit of $2.1 billion during the previous fiscal year.

It was apparently achieved following a strict policy to discourage unnecessary imports of luxury items, which were a drain on the current account. Other factors included encouraging remittances by expats and promoting exports of traditional and IT-related items.

Advisor to the Finance Minister Khurram Schehzad took to X to announce that the surplus was the highest in 22 years. “[The] country’s current account for June 2025 closes in a $328m surplus, taking the full-year surplus to more than 2.1bn,” he wrote. Mr. Schehzad added that remittances surged by 27% year-over-year to reach a “historic” $38 billion.

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He said that in the current fiscal year, textile exports increased by 7.4% year-over-year to $17.9 billion, while IT (information technology) and IT-enabled services exports climbed to $4.6 billion — a year-over-year increase of 44%.

“Last, but not the least, Pakistan Equities Market (KSE-100) crossed 1,40,000 points, making a historic mark in its history, with market value crossing ₹16.8 trillion (close to $60bn),” he wrote. Prime Minister Sharif expressed gratitude for the current account surplus, calling it “very welcome.”

Foreign exchange reserves have exceeded $19 billion due to government measures,” he was quoted as saying in a statement from his office. “The main reason for the stability in current account surplus is a significant increase in remittances and exports,” he added.

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“Improving financial and economic indicators show that the country’s economy is on the path of stability.” Mr. Sharif said the government is taking priority steps to provide a business and investment-friendly environment in the country.

Despite the positive development, Pakistan still needs to do a lot, as it is in the middle of an IMF programme of $7 billion. The 39-month Extended Fund Facility binds it to carry out several reforms, including ending subsidies and privatising several loss-making entities.