Historic current account surplus driven by remittances and export growth signals potential economic turnaround.
Key Takeaways:
* Pakistan recorded its highest-ever monthly current account surplus of $1.2 billion in March 2025.
* This surplus was primarily driven by record remittances of $4.1 billion and a rise in exports.
* The improved economic indicators suggest a potential boost in investor confidence.
Islamabad, Pakistan – April 19, 2025 – In an editorial published by The Express Tribune, concerns were raised regarding Pakistan’s economic stability, which now seems to be improving. The editorial, titled “A trending surplus,” highlights the country’s historic current account surplus. According to The Express Tribune, the surplus reached a record $1.2 billion in March 2025, a significant turnaround from previous deficits. The editorial is available at A trending surplus.
This substantial surplus has boosted the cumulative current account surplus for the first nine months of FY2025 to $1.86 billion, a stark contrast to the $1.65 billion deficit recorded in the same period last year.
The surge in the current account surplus is attributed primarily to two factors: record-high remittances from overseas Pakistanis and a notable increase in exports. Remittances reached an unprecedented $4.1 billion in March, reflecting a strong inflow of funds into the country. Exports also contributed positively, with an 8.7% year-on-year increase, reaching $3.51 billion.
This substantial surplus has boosted the cumulative current account surplus for the first nine months of FY2025 to $1.86 billion, a stark contrast to the $1.65 billion deficit recorded in the same period last year.
The increase in exports was broad-based, with significant contributions from the IT sector, which saw exports soar to a record $342 million in March, and the textile industry, where exports rose by 10% year-on-year. Imports also saw an increase, rising by 8% year-on-year to $5.92 billion.
This positive economic trend has instilled optimism among analysts. The expectation is that the current account will remain in surplus, potentially extending into FY26, which should further bolster investor confidence.
The State Bank of Pakistan (SBP) reported that this record surplus reflects the effectiveness of recent economic policies and the resilience of key sectors. The central bank’s foreign exchange reserves are projected to exceed $14 billion by June 2025, providing further stability to the economy.
