Pakistan’s economy showed signs of improvement as remittances rose by 7% between July and August 2025, reaching $6.35 billion. This growth reflects stronger support from overseas Pakistanis. The government released a report on Tuesday highlighting these positive economic indicators. Increased remittances have helped ease pressure on the country’s foreign reserves.
Meanwhile, exports grew by 10.2%, reaching $5.28 billion during the same two-month period. Imports saw a slight rise of 0.8%, totaling $10.4 billion. As a result, the current account deficit shrank to $620 million. This narrowing gap shows improved trade balance and better fiscal management.
Foreign direct investment (FDI) also climbed by 22%, totaling $364.3 million. The government credited this increase to growing investor confidence. Higher investment inflows add strength to the economy. This trend could continue if economic policies remain stable.
In another encouraging sign, the State Bank of Pakistan’s (SBP) reserves rose from $9.5 billion to $14.4 billion. The Ministry of Finance said rising remittances, exports, and FDI contributed to this increase. Stronger reserves help ensure economic stability during global uncertainties.
The report also showed growth in tax and non-tax revenue. The primary budget balance remained in surplus at Rs228.9 billion. This surplus shows improved fiscal discipline and reduced borrowing needs. Overall, these gains suggest Pakistan’s economy is slowly moving toward recovery.