- Smaller excess assigned to higher goods imports, to lower exports.
- In annual shift, the current account surplus dropped by 96%, according to SBP.
- The analysts expected the current account to be negative.
Karachi: Pakistan posted a smaller current account surplus in April, shrinking from the previous month and the same period last year, but still surprising expectations that highlighted a deficit.
The current account surplus dropped to $ 12 million, an amazing drop of 99% compared to the previous month. In annual shift, the surplus dropped by 96%, according to data published Friday by the State Bank of Pakistan (SBP).
In the 10 months preceding April 2025, the surplus reached $ 1.88 billion, showing a significant improvement compared to a deficit of $ 1.33 billion in the same period last year.
Most of the analysts expected the current account to be negative, largely due to a monthly slowdown in funding. The money sent home by the Pakistanis living abroad fell to $ 3.2 billion in April, a drop of 22% compared to the previous month.
However, funding of funds increased by 13% compared to last year. Entrances for the period from July to April in fiscal year 25 increased by 31%, totaling $ 31.2 billion.
The smallest surplus is mainly attributed to an increase in imports of goods and a drop in exports of goods. Analysts also noted differences in the commercial data reported by the SBP and the Pakistan Bureau of Statistics (PBS).
According to PBS, the total commercial difference was $ 3.43 billion, while the SBP declared a difference of $ 2.6 billion. In April, exports of goods according to the PBS were 2.1 billion dollars, while the SBP recorded exports of $ 2.6 billion for the same month.
In April, imports of goods increased 18% in annual sliding to $ 5.237 billion, compared to $ 4.44 billion the same month in the previous year. On a monthly basis, imports of goods also increased by 6%.
“The current account has displayed a surplus, drawn by strong sending in -laws, dividends and unusually low interests and a drop in imports of services,” said Awais Ashraf, research director at AKD Securities Limited.
“This improvement occurred despite imports exceeding the average of this year by 7% and exports decreasing by 4% below the average,” added Ashraf.
Analysts believe that the current account will continue to be in surplus for exercise 25.
“We expect the country to record a current account surplus of $ 1.6 billion in FY5, marking the first surplus after 14 years. This improvement is mainly attributable to a significant increase of 24% in annual shift in workers’ funds, which should reach $ 37.4 billion during the year, “said Sana Tawfiq, the research head of ARIF Habib Limited, in a note.
Data on the balance of payments occur after Pakistan received the second tranche of $ 1.02 billion from the International Monetary Fund (IMF) as part of a 7 billion dollars loan program.
This disbursement has further strengthened the exchange reserves of the central bank and strengthened macroeconomic stability, restoring more confidence in the rupe and the external position of the country.
The exchange reserves held by the SBP amounted to $ 10.40 billion on May 9. According to the SBP, the disbursement of the IMF loan will be reflected in its reserves for the week ending on May 16.
Last week, the IMF finalized his first examination of a 37 -month loan agreement he concluded with Pakistan last year, unlocking $ 1 billion for Pakistan. He also approved a new loan of $ 1.4 billion to help the country to face climate change.
Earlier this month, tensions increased between India and Pakistan, both neighbors of nuclear weapons. But after discussions and pressures in the United States, both parties agreed with a ceasefire.