Karachi: Pakistan's current account balance recorded a surplus of $582 million in December 2024, bringing the total for the first half of the fiscal year 2025 to $1,210 million. This development was largely attributed to increased remittances and a controlled trade deficit. However, the balance of payments (BoP) turned negative for the month due to loan repayments, despite a breakeven capital account. The BoP remains positive for the first half of the fiscal year.

According to a statement by JS Global, the BoP has turned negative for the second time in the fiscal year to date, previously occurring in July 2024. During this period, the State Bank of Pakistan (SBP) has managed to increase its reserves by $2.3 billion, reaching $11.7 billion, which has improved import cover from 2.0 to 2.8 months.

For the fiscal year 2025, the SBP anticipates the current account balance to remain within the lower end of the projected range of 0% to 1% of GDP. The central bank's target for the fiscal year appears achievable with the current trend of a balanced trade deficit and stable remittance inflows.