Pakistan posted USD 2.1 Billion surplus for the FY 2025 after 14 Years

Pakistan achieved a milestone after 14 years: the government of Pakistan was able to post a current account surplus of USD 2.1 billion after 14 years. It was unimaginable that the government of Pakistan would be able to post a current account surplus, as Pakistan did not see substantial growth in exports of goods. However, goods imports did rise to a substantial level, and Pakistan would have had a hard time managing it. However, due to the remittance inflows rising and the export services figures also rising, Pakistan was helped to achieve a current account surplus of USD 2.1 billion. 

It is no surprise that many countries have stopped lending to Pakistan unconditionally, as many nations want Pakistan to apply strict reforms to external sectors, where Pakistan has major issues. It is no surprise either that Pakistan is unable to borrow like in the past when KSA, UAE, and China used to lend to Pakistan unconditionally. However, now these countries do lend, but strings are attached, and Pakistan has to implement reforms of the IMF program.

In 2023, it was said that Pakistan was near to default, and Pakistan could hardly default due to external debt repayment; however, due to Shahbaz Sharif's timely efforts, Pakistan was saved from the brink of default. Therefore, from the brink of default to the current account surplus of USD 2.1 billion is quite an achievement for the government of Pakistan. For Pakistan, it is important to generate dollar inflows, and there are only three ways, which are exports, remittances, and FDI. Pakistan has to focus on all three sectors seriously.