Pakistan posted a current account deficit of $103 million in May 2025, according to data released by the State Bank of Pakistan (SBP). This marks a shift from the revised surplus of $47 million recorded in April.
On a year-on-year (YoY) basis, the current account shortfall dropped by 56%, compared to a deficit of $235 million in May 2024.
The decline in the current account position was mainly driven by a surge in imports and a simultaneous fall in exports. The trade deficit widened to $3 billion—reflecting a 52% YoY increase and a 16% rise from April 2025—according to Waqas Ghani, Head of Research at JS Global.
Despite the monthly setback, Pakistan maintains a current account surplus of $1.81 billion for the first eleven months of FY2024–25 (11MFY25), a strong turnaround from a deficit of $1.57 billion during the same period in the previous fiscal year.
Breakdown:
In May 2025, the combined exports of goods and services totaled $3.15 billion—down 15% from $3.71 billion in May 2024.
Imports, on the other hand, rose by 7% YoY, reaching $6.36 billion for the month.
Worker remittances reached $3.69 billion, reflecting a notable 13% year-on-year increase.
Slower economic growth and high inflation have contributed to a narrower current account deficit over the fiscal year. Additional support came from increased export earnings, elevated interest rates (now easing), and policy-driven import restrictions.
