Pakistan posts $103m current account deficit in May

June 17, 2025 (MLN): Pakistan has recorded a current account deficit of $103 million, the latest data issued by the State Bank of Pakistan (SBP) revealed today.

Last month, the country recorded a current account surplus of $47m, while in May, 2024 the current account deficit stood at $235m.

On a cumulative basis, the current account surplus in 11MFY25 was recorded at $1.81bn, showing an increase of 215.3% when compared to the deficit of $1.57bn in 11MFY24. 

During May, total exports fell by 15.2% to $3.15bn compared to $3.71bn in the same month of last year. While it fell 5.0% as against the exports of $3.31bn in the previous month.

Total imports rose 7.0% to $6.37bn as compared to the imports worth $5.95bn recorded in May of last year. Compared to the previous month, imports rose 3.9%.

Accordingly, the trade deficit in goods and services rose 43.9% from a year ago to $3.22bn. On a monthly basis, it widened 14.3%.

Cumulatively, the trade deficit in 11MFY25 was recorded at $27.06bn, a rise of 19.7% when compared to the deficit of $22.62bn in 11MFY24.

During the first 11 months of current fiscal year, exports rose 4.9% to $37.34bn compared to $35.58bn in the same period last year.

Imports rose 10.7% to $64.4bn in 11MFY25 compared to $58.2bn in the same period last year.

The data further details that the workers' remittances in May increased by 13.7% to $3.69bn as against $3.24bn in May 2024; while on a monthly basis, the remittances went up by 16.0% as compared to $3.18bn in the previous month.

Cumulatively in 11MFY25, workers' remittances were recorded at $34.89bn as compared to $27.09bn in 11MFY24, depicting a rise of 28.8%.

In line with projections shared by SBP Governor Jameel Ahmad during Monday’s post-MPC analyst briefing. The central bank chief had cautioned about a temporary dip, while maintaining that the full-year external position remains on a strong footing.

In a major confidence booster, the Governor also revealed that worker remittances are now projected to reach $38bn in FY25, up by more than $7bn from last year. “This is a good story,” he remarked, crediting resilient inflows for anchoring the current account.

Despite the marginal shortfall in May, Pakistan is still on course to post a current account surplus for the full fiscal year, supported by healthy remittances, improving exports, and prudent external financing management.

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