Pakistan
KARACHI: Pakistan’s current account surplus reached an impressive $1.21 billion during the first half of the current fiscal year (July-December 2024-25), according to a statement by the State Bank of Pakistan (SBP).
This marks a significant turnaround compared to the same period in the previous fiscal year, which recorded a current account deficit of $1.039 billion.
The SBP attributed this improvement to consistent efforts to address economic challenges and implement effective fiscal measures.
The surplus has been gradually increasing, with notable monthly performances, including a surplus of $582 million in December 2024 and $684 million in November 2024. These figures underscore Pakistan’s growing economic resilience and reflect a shift towards more sustainable external account management.
In addition to the current account performance, the SBP also reported updates on the country’s liquid foreign reserves.
As of January 10, 2025, Pakistan’s total foreign reserves stood at $16.45 billion. Of this amount, the central bank held $11.7 billion, while commercial banks maintained net foreign reserves of $4.7 billion.
The SBP highlighted a modest increase in its reserves during the week ending January 10, 2025, with an addition of $30 million, bringing the central bank’s total to $11.725 billion.
This gradual build-up of reserves reflects ongoing efforts to stabilize the economy and strengthen its financial position amidst global and domestic challenges.
The improving current account balance and rising foreign reserves indicate progress in Pakistan’s efforts to achieve macroeconomic stability.
These developments are seen as a result of enhanced export performance, restrained imports, and an increase in remittances, all of which have contributed to narrowing the external financing gap.
The positive trends in the current account and foreign reserves are being viewed as critical steps in reinforcing investor confidence, stabilizing the currency, and setting a stronger foundation for future economic growth in Pakistan.
