PAKISTAN’S external account posted a remarkable turnaround in the third quarter of the current financial year, with the current account registering a surplus of $1.2 billion in March 2025.
The country achieved a historic milestone in March with the highest-ever monthly current account surplus of $1.2 billion, which helped push the cumulative surplus for the first nine months of the year to $1.9 billion, a marked improvement compared to the $1.7 billion deficit posted during the same period last year.
This is yet another indication that economic policies of the government are on the right track and difficulties of the country as well as people could ease if these are sustained and made genuinely people-centric.
Earlier, the country received record remittances at $4.1 billion in March, which was linked to the economic recovery by Bloomberg.
Economic and financial experts point out that the record current account surplus of $1.2 billion in March 2025 was driven by a receipt of highest ever remittances of $4.1 billion from Pakistani Diaspora, slight rise in exports and a marginal decline in import bills due to stable oil prices.
They also argue that the performance reflects sustained improvement in external balances, prudent fiscal management and a narrowing trade gap, reversing last year’s deficit.
Prime Minister Shehbaz Sharif too has attributed the phenomenon to record remittances, increasing exports and the tireless efforts of the government’s economic team, describing the recent positive indicators as a reflection of the right direction of the government policies.
He pointed out that due to the efforts of the government economic team, the macroeconomic indicators had significantly improved and the recent improvement in Pakistan’s rating by Fitch rating agency reflected achievements of his government.
Positive indicators mean the current account is expected to remain manageable because of the successful implementation of the IMF programme and rising remittances, which are likely to cross the mark of $38 billion by the close of the financial year.
This will ease worries of our financial managers and that too at a time when they are preparing budgetary proposals for the next financial year but it is also a fact that the current account surplus is mainly attributable to a surge in remittances as exports increased only marginally (10%).
However, the encouraging performance of the country in IT exports shows we have the potential to increase our exports meaningfully provided odds are removed and more incentives are offered for growth of IT, industrial and agricultural sectors.
It is satisfying that the country’s IT sector maintained its handsome export growth, showing an increase of 23% year-on-year by the end of the third quarter of the current financial year as compared to the corresponding period of the last financial year.
The credit for this surely goes to the strategies of the Ministry of IT and Telecommunication, enabling companies to focus both on traditional and non-traditional markets.
Similarly, proposals aimed at promoting corporate farming have the potential to bring about a revolution in agricultural productivity provided we discard the tendency of doing politics over the economy of the country.
Financial future of the country will also become predict-able if our natural resources are exploited properly and honestly.
A substantial increase in exports is the only way to ensure a satisfactory increase in the foreign exchange reserves of the country, which are presently highly dependent on foreign loans and deposits.
