Pakistan recorded a current account surplus of $1.2 billion in March, according to data released by the State Bank of Pakistan (SBP) on Thursday. The improvement was largely driven by a sharp rise in workers’ remittances and stronger export performance.
The surplus marks a significant turnaround from February, when the country posted a current account deficit of $97 million. In comparison, March 2024 had seen a surplus of $363 million.
Over the first nine months of the ongoing fiscal year (July to March), the cumulative current account surplus stood at $1.86 billion. This reflects a major shift from the $1.65 billion deficit recorded in the same period of the previous fiscal year, showing an improvement of over 212 per cent.
Exports and imports
Pakistan’s export earnings rose by 8.7 per cent year-on-year in March, reaching $3.51 billion. Compared to February 2025, exports also increased by 5.9 per cent.
Imports in March were valued at $5.92 billion, up 8 per cent from the same month last year. However, compared to February, imports declined by 1.9 per cent.
As a result, the trade deficit in goods and services widened by 7 per cent year-on-year to $2.41 billion. On a monthly basis, however, it narrowed by 11.5 per cent.
In the first nine months of FY25, the trade deficit rose by 14.7 per cent to $21.05 billion, compared to $18.35 billion during the same period of the previous fiscal year.
Growth in remittances
A key factor behind the improved current account balance was a strong rise in remittances. In March, overseas Pakistanis sent home $4.06 billion, a jump of 37.3 per cent compared to $2.95 billion in March 2024. Month-on-month, remittances were up nearly 30 per cent from February’s $3.12 billion.
From July to March, total remittances amounted to $28.03 billion — a 33.2 per cent increase from the $21.04 billion received during the same period in FY24.
Trade performance over nine months
During the first nine months of FY25, Pakistan’s exports rose by 8.1 per cent year-on-year to $30.9 billion. Imports also increased, rising 10.7 per cent to $51.94 billion.
Despite the growing trade gap, the rise in remittances has helped offset external pressures, allowing the current account to remain in surplus so far this fiscal year.
