Pakistan recorded a current account deficit of $254 million in July 2025, according to figures released by the State Bank of Pakistan (SBP). This comes after a rare $328 million surplus in June 2025, raising concerns about the sustainability of recent gains. However, the deficit is lower than July 2024, when it stood at $350 million, offering some relief.
The country had closed FY25 on a positive note, achieving a $2.1 billion current account surplus, the first in 14 years. This was largely driven by a 27% rise in workers’ remittances, which totaled $38.3 billion for the year. The government had also implemented import restrictions and pursued tight monetary policy to narrow the external financing gap.
In June 2025, exports of goods and services rose to $3.33 billion, an 8% increase year-on-year, supported by a recovering manufacturing sector and steady textile shipments. On the other hand, imports reached $5.84 billion, only 1% higher than the previous year, indicating some control over demand. These trends contributed to the temporary surplus in June.
Workers’ remittances continued to perform strongly in June, totaling $3.41 billion, over 8% higher than June 2024. Remittance inflows from Saudi Arabia, the UAE, and the UK were key contributors. These inflows remain vital for financing Pakistan’s trade imbalance and easing pressure on the rupee.
While July’s deficit isn’t alarming on its own, it signals that maintaining a stable external account will require consistent remittance flows, stronger export growth, and controlled imports. The decline in interest rates and easing of import restrictions could test Pakistan’s external stability in the coming months, especially with rising global oil prices and a volatile rupee.