Pakistan recorded a $110 million current account surplus in September 2025, according to the State Bank of Pakistan (SBP). This is a sharp improvement from the $52 million deficit seen in the same month last year. The positive shift was driven by strong remittance inflows and higher export earnings. These developments signal improving economic stability, at least in the short term.
During September, remittances rose to $3.18 billion, showing an 11% increase compared to the same period last year. Exports also grew, reaching $3.43 billion, up almost 5% year-on-year. However, imports remained high at $6.02 billion, showing a 6% increase from September 2024. Despite rising imports, the remittance and export growth helped tip the balance into surplus.
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Even though September showed improvement, the first quarter of FY26 still posted a deficit. From July to September, Pakistan recorded a $594 million current account deficit. This was 18% higher than the $502 million deficit in the same quarter last year. The quarterly figures show that the economy still faces external pressure.
However, some recent policy measures have helped reduce the deficit. High inflation and slow economic growth limited import demand. In addition, high interest rates and restrictions on non-essential imports supported the current account balance. These factors gave the central bank some relief, even as economic challenges remain.
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Experts say strong remittances and rising exports are key to long-term stability. But, they warn that import demand could grow again as interest rates fall. While the September surplus is a good sign, sustainable improvement depends on continued export growth and consistent overseas inflows.