Pakistan’s current account balance recorded a deficit of $12 million in February 2025, marking the second consecutive month of negative balance after three months of surplus, according to data released by the State Bank of Pakistan (SBP) on Tuesday.
The February deficit represents a significant improvement compared to January’s $400 million shortfall, suggesting a potential stabilization in external accounts. However, it contrasts with the $71 million surplus recorded in February 2024.
Despite the recent monthly deficits, Pakistan’s overall external position for the current fiscal year remains positive. For the first eight months of FY25 (July-February), the country has maintained a cumulative current account surplus of $691 million, representing a dramatic turnaround from the $1.73 billion deficit reported during the same period last fiscal year.
Economic analysts attribute this improvement to several factors, including increased remittances, better export performance in certain sectors, and the government’s ongoing efforts to manage imports through various administrative measures.
The current account performance is being closely monitored by international financial institutions, particularly the International Monetary Fund (IMF), which considers external balance a key indicator of Pakistan’s economic stability under its ongoing $7 billion Extended Fund Facility program.
