- January shows a $121 million surplus after December’s deficit.
- Monthly improvement came from higher remittances and exports.
- July–January period still shows a deficit above $1 billion.
- Rising imports and lower exports caused an annual decline.
The State Bank of Pakistan (SBP) released the country’s current account data late last night. The figures showed that income from abroad became higher than spending, which pushed the current account from negative into positive.
According to SBP data, the current account recorded a surplus of $121 million in January. In December, the country had a deficit of about $390 million. The improvement on a monthly basis likely came from increasing remittances and exports, according to experts.
Monthly Improvement but Yearly Pressure Remains
On a yearly basis, the situation shows decline. SBP data shows that from July to January of the current fiscal year, the current account deficit exceeded $1.074 billion.
In the same period last year, the country had a surplus of about $560 million. The government had earlier highlighted FY25’s annual current account surplus of $1.932 billion as a sign of improving external stability.
Experts said increasing imports played a major role in creating the annual deficit.
- Imports reached $36.662 billion during the seven-month period, compared with $33.383 billion last year.
- Exports declined to $18.26 billion from $19.327 billion.
Analysts Warn of Risks Despite Positive Support Factors
Economists warned that if the current account deficit keeps growing, it could affect the exchange rate. They noted that higher foreign exchange reserves and rising remittances helped maintain external stability so far.
However, analysts said low foreign investment and investors pulling money out of the stock market make it difficult for Pakistan to keep a strong external position.
Remittances increased by 11% during July–January, and inflows could cross the government’s $40 billion yearly target. Analysts also said that regional uncertainty and higher oil prices increased pressure, while weak foreign investment remained a concern.
