Pakistan posts strong external gains in FY25 amid tensions: Economic Survey

June 09, 2025 (MLN): Despite global trade disruptions and rising geopolitical tensions, Pakistan’s external sector showed marked resilience during July–April FY2025, achieving a historic current account surplus of $1.9 billion, a significant turnaround from a deficit of $1.3bn in the same period last year.

Exports recorded a growth of 6.8%, led by textiles, which maintained a 53% share in total exports.

Imports rose by 11.8%, but prudent management kept the overall trade deficit in check.

Remittances played a pivotal role in strengthening the external position, reaching $31.2bn, with a record monthly inflow of $4.1bn in March 2025.

This marked a 30.9% year-on-year growth, driven by robust labor markets and improved formal remittance channels.

Foreign exchange reserves stood at $16.64bn as of May 27, 2025 $11.5bn held by SBP and $5.14bn with commercial banks.

The average exchange rate for July–April FY2025 was Rs278.72 per US dollar.

The financial account showed a net outflow of $1.6bn, reflecting higher debt repayments and reduced external borrowing.

FDI stood at $1.8bn, with major contributions from China, Hong Kong, and the UK, concentrated in energy and financial sectors.

The trade deficit in services widened to $2.5bn, as service imports outpaced exports.

Exports of services grew by 9.3% to $6.9bn, while imports rose to $9.4bn.

The primary income account posted a deficit of $7.1bn, up by $803 million over the previous year, largely due to outflows on investment income.

Despite a $1.6bn net outflow in the financial account, exchange rate stability, IMF support, and growing remittances underpinned a positive balance of payments outlook, reinforcing macroeconomic confidence.

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