Pakistan Records $2.1 Billion Current Account Surplus, Highest in 22 Years

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Pakistan has achieved a major economic milestone by posting a $2.1 billion current account surplus for the fiscal year 2024–2025, the largest in over two decades. Prime Minister Muhammad Shehbaz Sharif hailed this development as a strong signal of economic recovery, attributing the surplus to strategic policy interventions and an increase in remittances and exports. The announcement follows a series of positive fiscal indicators pointing toward macroeconomic stability, including rising foreign exchange reserves and improved investor sentiment.

In a public statement on Friday, Prime Minister Sharif credited the surplus to a significant rise in overseas remittances and export revenues, particularly from the textile sector and emerging IT exports. “The current account surplus has reached the highest level in 22 years, which is a very positive development,” he said. According to the prime minister, foreign exchange reserves have surpassed $19 billion, providing a buffer against external shocks and strengthening the country’s financial outlook. He emphasized that economic reforms introduced by his administration have laid the foundation for future growth.

The Prime Minister also highlighted the government’s ongoing efforts to create a more business-friendly environment. He noted that structural measures aimed at simplifying regulations, attracting foreign direct investment (FDI), and promoting domestic industry are beginning to produce results. While some critics argue that Pakistan’s growth remains uneven and reliant on external inflows, recent trends indicate increasing fiscal discipline and prudent economic management. As Pakistan continues its $7 billion International Monetary Fund (IMF) programme, maintaining this momentum will be crucial for securing sustainable long-term gains.

The broader picture reflects cautious optimism. Financial indicators are improving, investor confidence is returning, and economic fundamentals are stabilizing. However, long-term resilience will depend on consistent policy enforcement and continued economic liberalization. As Prime Minister Sharif praised the efforts of his economic team, the challenge now lies in transforming this fiscal success into structural improvements that benefit a wider segment of the population. With geopolitical risks and global inflation still present, Pakistan’s ability to build on this surplus will be closely watched. Nevertheless, the record-breaking surplus marks a critical turning point in the country’s economic trajectory and offers a potential path toward sustained fiscal health.