Introduction & Publish Time
Published today—In a landmark development, Pakistan’s current account balance has recorded a surplus of 0.2% of GDP in FY 25, marking the country’s first such surplus in 15 years. The update comes as part of the World Bank’s recent Pakistan Development Update (April 2025), highlighting the impact of remittances and fiscal consolidation efforts.
Key Highlights
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The surplus was driven by strong remittance inflows and disciplined fiscal management.
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Analysts say this milestone underscores the early success of the Uraan Pakistan transformation strategy and reforms under the IMF-backed plan.
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Despite this, projections suggest the current account may return to deficits in FY 26 and FY 27 due to rising import demand and economic expansion.
Strategic Significance
This achievement signals improving macroeconomic resilience and investor confidence. The surplus offers temporary relief for Pakistan’s dwindling foreign reserves—reinforcing the credibility of recent fiscal and policy reforms.
Outlook
As Pakistan solidifies gains through continued reform and strengthened remittance growth, the path to durable economic stabilization appears more promising. However, maintaining this momentum will require sustained implementation of fiscal discipline and export growth strategies.