Beyond the surplus

PAKISTAN’S current account posted a full-year surplus of $2.1bn — about 0.5pc of GDP — in FY25, marking the first such outcome in 14 years.

According to State Bank data, the turnaround from a deficit of $2.07bn in the previous fiscal reflects a sharp though fragile improvement in external balances.

The surplus coincides with a rise in foreign exchange reserves to $14.5bn, enough to cover 10-12 weeks of compressed imports, but still less than the $16bn in bilateral debt rolled over annually by China...