Pakistan’s current account balance recorded a deficit of $420 million in January 2025, according to data released by the State Bank of Pakistan (SBP) on Tuesday. This marks the first deficit in four months, following a surplus in each of the previous three months—October, November, and December 2024.

In December 2024, the current account balance had posted a surplus of $474 million, while in January 2024, the country experienced a deficit of $404 million. The recent deficit is attributed to a month-on-month increase in the trade deficit, which rose by 37 percent to $2.5 billion. The Pakistan Bureau of Statistics (PBS) reported a trade deficit of $2.3 billion for January 2025.

Despite the January deficit, the current account surplus for the first seven months of the fiscal year 2024-25 stands at $682 million, a significant improvement compared to a deficit of $1.8 billion during the same period last year (7MFY24).