The State Bank of Pakistan (SBP) has reported a notable turnaround in the country’s external sector, as the current account balance shifted from a deficit to a surplus in September 2025. According to the central bank, Pakistan recorded a current account surplus of $110 million during the month, marking a sharp recovery from a deficit of $325 million in August.
The improvement in the current account balance is being viewed as a positive development for the economy, which has been struggling with persistent external financing pressures, declining reserves, and high import bills.
Analysts attribute the surplus primarily to a rise in remittance inflows from overseas Pakistanis, which helped offset the stagnant export performance and moderate import growth during the period.
Data from the SBP suggests that remittance inflows saw an uptick as Pakistanis working abroad sent higher amounts to support families amid rising domestic costs. This trend has been reinforced by improved formal transfer channels and seasonal factors, as remittances typically increase ahead of major religious and social events.
While exports remained largely unchanged due to weak global demand and domestic supply constraints, imports showed limited growth, reflecting stable oil prices and tighter fiscal management.
Economists believe that restrained import demand, coupled with steady remittance inflows, played a crucial role in pushing the current account into surplus territory.
However, experts have cautioned that sustaining this improvement will require consistent policy efforts to boost exports, attract foreign investment, and maintain remittance momentum. They noted that temporary surpluses may not be enough to stabilize the external sector without long-term structural reforms.
The SBP continues to monitor the external balance closely, emphasizing that maintaining a manageable current account position is essential for exchange rate stability and broader economic recovery in the months ahead.
