In a remarkable turnaround, Pakistan has posted a current account surplus after 14 years, marking a significant shift in the country's economic outlook.

According to data released by the State Bank of Pakistan (SBP) on Friday, the nation recorded a surplus of $2.1 billion in fiscal year 2024–25, reversing a $2.07 billion deficit from the previous year.

Sharing the development on X, the SBP confirmed, “The current account balance recorded a surplus of $2.1 billion during FY25 compared to a deficit of $2.1 billion during FY24.” This achievement is not only historic but also reflects the highest surplus in over two decades.

The positive momentum continued into June 2025, with a monthly surplus of $328 million—up from an $84 million deficit in May and a staggering $500 million deficit in June 2024.

Khurram Schehzad, adviser to the finance ministry, also highlighted the achievement on social media, noting, “The country’s Current Account (CA) for June 2025 closes in $328 million Surplus, taking the full-year Surplus to over $2.1 billion—the first annual Surplus recorded after 14 years and the largest Surplus in 22 years.”

Several key factors contributed to this sharp turnaround. According to Topline Securities, the surplus—equivalent to 0.5% of GDP—was primarily driven by a 27% surge in remittances, a 16% drop in the services deficit, and structural reforms that encouraged the use of formal banking channels.

Remittances soared to a record $38.3 billion, boosted by better incentives for financial institutions, increased manpower exports, and a reduced exchange rate gap between the official and informal markets. March 2025 alone saw remittances hit a historic high of over $4 billion.

Meanwhile, textile exports also played a vital role, growing 7.4% year-on-year to reach $17.9 billion, according to the Pakistan Bureau of Statistics. The country’s IT sector showed impressive gains as well, with June 2025 exports hitting $338 million—a 14% increase from the same month last year. Overall, Pakistan’s IT exports for FY25 totaled $3.8 billion, up 18% from the previous fiscal year.

Despite the positive results, the goods trade deficit widened to $27 billion, slightly dampening the overall gains. However, Topline expects only a mild current account deficit of $0.5–1.5 billion in FY26, depending on global economic trends.