KARACHI – Pakistan’s current account shows a $420 Million deficit in January 2025, amid an economic shift, data shared by the central bank said.
As per latest stats, the current account recorded deficit of $420 million in January-25, after five months of surpluses in what is said to be 4percent increase compared to $404 million deficit in January-24.
State Bank shared December 2024’s reported surplus from $582 million to $474 million. Despite January’s deficit, Pakistan’s current account showed a surplus of $682 million for the first seven months of fiscal year 2025 (7MFY25) – an improvement compared to $1.801 billion deficit in the same period last year.
Exports of goods and services in January 2025 touched $3.631 billion, up 8pc from previous year, while imports rose by nearly 15pc, totaling $6.461 billion. Worker remittances also saw a significant increase, growing by 25% to reach $3.002 billion.
The narrowing of Pakistan’s current account deficit is linked to different factors, including low economic growth, high inflation, an increase in exports, high interest rates (which have recently begun to decline), and restrictions on imports.
For the first seven months of FY25, Pakistan’s total exports amounted to $23.92 billion, imports reached $39.99 billion, and remittances totaled $20.85 billion, reflecting a 32% increase compared to $15.83 billion during the same period last year.
The current account balance remains a key figure for Pakistan’s economy, as a widening deficit can put pressure on the exchange rate and deplete foreign exchange reserves, while a surplus helps stabilize the country’s financial situation.
Pakistan’s current account deficit narrowed to 13-year low: SBP
