Islamabad, July 19, 2025: For the first time in 14 years, Pakistan has ended the financial year with a current account surplus, signaling signs of economic recovery under the $7 billion IMF program launched in September 2024. The country also witnessed an all-time high in its stock market performance.
Khurram Schehzad, adviser to the finance ministry, shared this development on social media, noting that the current account showed a $328 million surplus in June 2025. This pushed the full-year surplus to the highest in 22 years to over $2.1 billion.
According to Schehzad, textile exports increase by 7.4% year-on-year to $17.9 billion, while foreign direct investment went up by 5% to $2.5 billion. He added that remittances reach a new record of $38 billion showing a strong 27% increase from the previous year.
The Real Effective Exchange Rate (REER) declined to 96.6 making Pakistani goods more competitive globally. This could help maintain stability in the external account.
READ MORE: Dollar Crunch Persists Despite Record Remittances and Surplus
In the stock market, the KSE-100 index crossed 140,000 points for the first time. Total market value reached Rs. 16.8 trillion (roughly $60 billion), making Pakistan the fourth-best performing stock market in the world for July 2025 so far.
READ MORE: Pakistan Records Current Account Surplus in April
Topline Securities noted that this surplus, equal to 0.5% of GDP, came after a $2 billion deficit last year. The change was mainly due to a rise in remittances and a 16% drop in the services trade gap, even though the goods trade deficit widened to $27 billion.
Reforms in exchange rates and tighter controls on informal money transfers also played a key role. For FY26, experts expect a small deficit between $0.5 and $1.5 billion, depending on global trends.
