Pakistan’s current account balance recorded a deficit of $420 million in January 2025, according to data released by the State Bank of Pakistan (SBP) on Tuesday.
First Deficit in Four Months
This marks the first time in four months that the current account has slipped into a deficit. Previously, the current account posted a surplus for three consecutive months—October, November, and December 2024.
Comparison with Previous Months
In December 2024, the current account had a surplus of $474 million, whereas, in January 2024, the current account recorded a deficit of $404 million.
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Key Factors Behind the Deficit
The return to a deficit on a month-on-month (MoM) basis was driven by a 37% increase in the trade deficit, which widened to $2.5 billion. Meanwhile, the Pakistan Bureau of Statistics (PBS) reported a trade deficit of $2.3 billion for January 2025.
7MFY25 Current Account Position
Despite the January deficit, the current account surplus for the first seven months of FY25 (7MFY25) stands at $682 million, a significant improvement compared to the $1.8 billion deficit recorded in the same period of FY24 (7MFY24).
