Islamabad, June 17, 2025: Pakistan’s current account deficit dropped to just $103 million in May 2025, marking a significant 56% decline compared to the $235 million shortfall in May 2024, according to fresh figures released by the State Bank of Pakistan (SBP). This improvement highlights ongoing adjustments in the country’s external trade dynamics and rising foreign inflows.
During the first eleven months of FY2024-25 (July to May), the country recorded a current account surplus of $1.8 billion, a sharp turnaround from the $1.572 billion deficit posted in the same period of the previous fiscal year. This reversal reflects enhanced economic discipline and strong support from remittance inflows.
Although monthly exports slipped 19% year-on-year in May to $2.4 billion, total exports over the 11-month period showed a modest 4% increase, reaching $29.6 billion. On the other hand, imports climbed 9% YoY in May to $5.4 billion, while cumulative imports during July-May soared by 11%, touching $54 billion—suggesting higher domestic demand and global commodity pressures.
A major positive came from overseas Pakistanis, as workers’ remittances rose by 14% in May, reaching $3.6 billion. Cumulatively, remittances grew by a robust 29%, amounting to $34.9 billion during 11MFY25—bolstering the external account and softening the trade imbalance.
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Pakistan’s improving current account position, backed by rising remittances and export resilience, may provide some cushion to the rupee and fiscal planners, despite pressure from rising imports.
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