By Staff Reporter
KARACHI: The current account swung to a record monthly surplus of $1.2 billion in March 2025, its highest in at least 13 years, as worker remittances surged and lower oil prices eased import costs, bolstering efforts to stabilise the crisis-prone economy.
The State Bank of Pakistan reported on Thursday the surplus marks a sharp reversal from a revised $97 million in February and $363 million surplus (revised) in March 2024.
Brokerages Topline Securities and Arif Habib Ltd. called it the “highest-ever monthly surplus,” exceeding the prior record of $981 million in August 2012.
For the first nine months of FY25, the current account posted a $1.86 billion surplus, a dramatic shift from a $1.65 billion deficit in the same period last fiscal year.
“With oil prices down, and remittances continuing to make a record mark, Pakistan’s current account is expected to be in deep surplus by June FY25 (may also continue in FY26), thereby resulting in further scale-up in overall investor confidence,” Khurram Schehzad, Advisor to Finance Minister, said in a statement.
Goods exports rose 8.7% year-on-year to $3.51 billion in March, while imports climbed $5.92 billion, leaving a trade deficit of $2.41 billion. However, this gap was offset by surging remittances and a narrower services deficit, which contracted 13 percent to $226 million in March —though it remained 14% higher than a year earlier. The primary income deficit widened 11% year-on-year to $657 million.
Central to the surplus was a 71% year-on-year surge in worker remittances, which soared to $4.05 billion in March 2025, marking the highest single-month inflow on record and emerging as the primary driver of the current account surplus.
Analysts at Topline Securities linked the historic jump to seasonal inflows tied to Ramadan and Eid festivals, a rise in overseas migration to Gulf nations and Europe, government-backed incentives to route funds through formal banking channels, and higher interest rates on foreign currency accounts. The State Bank of Pakistan (SBP) revised its full-year remittance
The central bank revised its full−year remittance forecast upward to $38 billion from $36 billion, reflecting sustained momentum in inflows.
The surplus underscores the impact of aggressive policy measures, including import restrictions on non-essential goods, a high-interest rate environment (benchmark rate is still in double digits despite recent cuts), and subdued economic growth, with FY25 GDP projected at 2.5 percent. Elevated inflation in recent months further suppressed domestic demand for imports.
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