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News18
6 days ago
- Business
- News18
Pakistan records annual current account surplus of USD 2.1bn: Official data
Islamabad, Jul 19 (PTI) Pakistan recorded a current account surplus of USD 2.1 billion during the current fiscal year ending June 30, according to official data. Prime Minister Shehbaz Sharif hailed the development as a sign of an improving economy. The country faced a perennial issue of balance of payment and periodically rushed to the International Monetary Fund and other financial institutions to get monetary support. The latest data of the State Bank of Pakistan (SBP) on Friday showed the current account surplus was recorded at USD 2.1 billion, compared to a deficit of USD 2.1 billion during the previous fiscal year. It was apparently achieved following a strict policy to discourage unnecessary imports of luxury items, which were a drain on the current account. Other factors included encouraging remittances by expats and promoting exports of traditional and IT-related items. Adviser to the Finance Minister Khurram Schehzad took to X to announce that the surplus was the highest in 22 years. '[The] country's current account for June 2025 closes in a USD 328m surplus, taking the full-year surplus to over USD 2.1bn," he wrote. Schehzad added that remittances surged by 27 per cent year-on-year to reach a 'historic" USD 38 billion. He said that in the current fiscal year, textile exports increased by 7.4 per cent year-on-year to USD 17.9 billion, while IT (information technology) and IT-enabled services exports climbed to USD 4.6 billion — a year-on-year increase of 44 per cent. 'Last, but not the least, Pakistan Equities Market (KSE-100) crossed 140,000 points, making a historic mark in its history, with market value crossing Rs 16.8 trillion (close to USD 60bn)," he wrote. Prime Minister Sharif expressed gratitude for the current account surplus, calling it 'very welcome". Foreign exchange reserves have exceeded USD 19 billion due to government measures," he was quoted as saying in a statement from his office. 'The main reason for the stability in current account surplus is a significant increase in remittances and exports," he added. 'Improving financial and economic indicators show that the country's economy is on the path of stability." Sharif said the government is taking priority steps to provide a business and investment-friendly environment in the country. Despite the positive development, Pakistan still needs to do a lot, as it is in the middle of an IMF programme of USD 7 billion. The 39-month Extended Fund Facility binds it to carry out several reforms, including ending subsidies and privatising several loss-making entities. PTI SH NSA NSA view comments First Published: July 19, 2025, 10:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Business Recorder
7 days ago
- Business
- Business Recorder
June C/A closes with $328m surplus: advisor
ISLAMABAD: Khurram Shahzad, adviser to the finance minister said that country's Current Account (CA) for June 2025 closes in $328 million surplus, taking full-year surplus to over $2.1 billion —annual surplus recorded after 14 years, and the largest surplus in 22 years. He further said that Real Effective Exchange Rate (REER) index has dropped further to 96.6, rendering PKR more competitive against US$, which should support country's exports and keep external account in check. Pakistan Equities Market (KSE-100) crossed 140,000 points, making a historic mark in its history, with market value crossing Rs16.8 trillion (close to $60 billion), he added. Separately, former caretaker minister Gohar Ejaz said the country is on track for positive economic development and growth, and any attempt to manipulate the exchange rate by any segment must be strongly resisted, as it would risk undoing three years of hard-earned economic stabilisation efforts. 'In June, the Real Effective Exchange Rate (REER) stood at 96.61, indicating that the Pakistani rupee is currently undervalued. It is essential to maintain a market-based exchange rate to preserve macroeconomic progress. The country is on track for positive economic development and growth, and any attempt to manipulate the exchange rate by any segment must be strongly resisted, as it would risk undoing three years of hard-earned economic stabilization efforts', Ejaz stated. He said that the State Bank of Pakistan (SBP) must continue to maintain positive real interest rates in accordance with the International Monetary Fund (IMF) agreement and basic economic principles. However, the current policy rate is 11 percent, while full-year inflation for 2025 stands at 4.6 percent. Maintaining a policy rate that is 6.4 percentage points above inflation lacks sound economic justification, he added. Copyright Business Recorder, 2025
