Islamabad: Pakistan has recorded a current account surplus of USD 2.1 billion in FY2025, compared to a deficit of USD 2.1 billion in the previous fiscal year, marking a USD 4.2 billion turnaround — the highest surplus in 22 years, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal announced on Tuesday.
Speaking at the launch of the Monthly Development Update – August 2025, the minister said the country’s economy had entered a phase of sustained stability, with all major macroeconomic indicators showing positive trends this year.
According to Iqbal, remittances in July 2025 rose 7.4% year-on-year to USD 3.2 billion, while exports grew 17% to USD 2.7 billion. On the fiscal side, the deficit fell to 5.4% of GDP — the lowest in eight years — and the primary balance posted a surplus of 2.4% of GDP, the highest in 24 years.
Development spending reached Rs1,068 billion in FY2025, achieving a 98% utilisation rate of authorised allocations. Inflation also dropped sharply, with the Consumer Price Index (CPI) falling to 4.1% in July 2025 from 11.1% a year earlier, and the annual inflation rate down from 38% to just 4%.
Iqbal highlighted that the Pakistan Stock Exchange crossed the 141,000-point mark on August 1, aided by a new trade agreement with the United States securing the lowest tariff rates in South Asia.
The minister also announced the successful launch of Pakistan’s Remote Sensing Satellite from China on July 31, 2025, aimed at supporting agriculture monitoring, urban planning, disaster management, and climate change analysis. He added that Pakistan’s first astronaut is expected to conduct scientific experiments in collaboration with China in 2026.
On the policy front, the government plans to focus PSDP 2025–26 spending on export-led, technology-driven projects with emphasis on youth and women empowerment, climate resilience, and inclusive growth.
International financial institutions and rating agencies have acknowledged the country’s economic recovery, with Fitch, Moody’s, and S&P upgrading Pakistan’s ratings and outlook. US financial magazine Barron’s described the turnaround as a “macroeconomic miracle.”
Iqbal concluded that the government aims to sustain this momentum through structural reforms, disciplined fiscal management, and stronger international partnerships to ensure long-term economic resilience.
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