Pakistan’s Prime Minister Shehbaz Sharif. File
| Photo Credit: Reuters
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.
Pakistan claims terror network ‘dismantled’, denies LeT link to Pahalgam attack
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.
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.
Can India push Pakistan into FATF’s ‘Grey list’?
“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.
Published – July 19, 2025 12:10 pm IST
