ISLAMABAD (PEN) : Pakistan’s current account swung into a deficit of *\$103 million* in May 2025, reversing the surplus of *\$47 million* (revised) recorded in April, according to data released Tuesday by the *State Bank of Pakistan (SBP)*.
Despite the monthly deficit, the current account remains in surplus for the overall fiscal year, with *\$1.81 billion* recorded over the first 11 months of FY25, compared to a *\$1.57 billion deficit* in the same period last year.
Year-on-Year Decline in Deficit
On a year-on-year (YoY) basis, the deficit in May dropped *56%, compared to *\$235 million** in May 2024, reflecting improved external sector management despite recent trade imbalances.
Key Drivers: Trade Deficit & Export Decline
According to *Waqas Ghani*, Head of Research at JS Global, “Current account posted a deficit of \$103 million, reversing the surplus trend seen in previous months. This deterioration was largely due to the widening trade deficit, which rose to \$3 billion, up 52% YoY and 16% from April 2025.”
In May, *exports* of goods and services totaled *\$3.15 billion, marking a **15% decline* compared to the *\$3.71 billion* recorded in the same month last year.
Meanwhile, *imports* rose to *\$6.36 billion, reflecting a **7% increase YoY*, driven by higher global commodity prices and a slight easing of import restrictions.
Remittances Provide Cushion
A positive contributor to the external account remained *workers’ remittances, which totaled *\$3.69 billion** in May 2025—up more than *13%* from a year earlier, signaling continued support from the Pakistani diaspora amid a stable exchange rate environment.
Economic Outlook
Analysts note that while high inflation and slower growth have helped suppress demand for imports, recent relaxations and external obligations have reignited pressure on the trade balance. Policymakers are expected to maintain a cautious stance as the country looks to sustain external sector stability.
