Latest news with #KhurramSchehzad
New Indian Express
4 days ago
- Business
- New Indian Express
Pakistan records annual current account surplus of USD 2.1 bn, PM Shebaz hails it as 'sign' of development
ISLAMABAD: 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.
Business Recorder
5 days ago
- Business
- Business Recorder
C/A posts surplus of over $2bn after 14 years
KARACHI: Pakistan's current account balance recorded a surplus of over 2 billion dollars in the last fiscal year (FY25) for the first time in 14 years, driven by a substantial increase in workers' remittances. The State Bank of Pakistan (SBP) on Friday reported that Pakistan has achieved a current account surplus of $2.1 billion in FY25 as against a deficit of $2.1 billion in the previous year (FY24). Khurram Schehzad, Advisor to the finance minister, has said that annual current account surplus has been recorded after a gap of 14 years, and the largest surplus in 22 years. He termed it a key development on the external front of Pakistan's economy, adding that the overall economic performance is encouraging and the country is on the right track due to appropriate policy measures. Monthly basis, the current account balance for the last month (June) of FY25 also posted a surplus of $328 million, compared to deficit of $500 million in June 2024. In addition, current statistics of June 2025 are also better than May 2025, in which the country posted $84 million deficit. Economists attribute this improvement to robust policy measures and consistent efforts by the federal government and the SBP to strengthen the external account and channel remittances through formal avenues. They said that all time high inflows of remittances is the major factor was behind the current account surplus in the last fiscal year. 'The remarkable shift was primarily fuelled by a sharp rise in workers' remittances, which provided crucial support to the external account,' they added. In a historic economic milestone, with a significant 27 percent growth, Pakistan recorded its highest-ever home remittance inflows, exceeding $38 billion during the last fiscal year FY25. According to SBP, Pakistan's trade deficit widened by $4.6 billion to $26.78 billion in FY25, compared to $22.18 billion in FY24. The increase was primarily driven by a higher import bill amid a pickup in economic activity. During the period under review, import bill increased by 11 percent to $59 billion from $53 billion. Exports also posted 4 percent or $1.295 billion growth to reach $32.295 billion in FY25 from $31 billion in FY24. Khurram Schehzad said that Real Effective Exchange Rate (REER) index has also dropped further to 96.6, rendering PKR more competitive against US$, which should support country's exports and keep external account in check. In addition, Pakistan Stock Market continues to be in the top Global rankings, currently 4th best globally Jul-25 to date, he said and added that on Friday Pakistan Equities Market (KSE-100) also crossed 140,000 points during the intraday trading, making a historic mark in its history, with market value crossing Rs 16.8 trillion (close to $60bn). Copyright Business Recorder, 2025
Arab News
5 days ago
- Business
- Arab News
Pakistan posts first annual current account surplus in 14 years
KARACHI: Pakistan has posted a full-year current account surplus for the first time in 14 years, alongside record-breaking performance in its equity market, reflecting broad signs of economic stabilization under the country's $7 billion IMF program approved in September 2024. Khurram Schehzad, adviser to the finance ministry, shared the data on social media, highlighting a $328 million current account surplus in June 2025. 'Country's Current Account (CA) for June 2025 closes in $328Mn Surplus, taking full-year Surplus to over $2.1Bn — annual Surplus recorded after 14 years, and the largest Surplus in 22 years,' the adviser wrote on X. He said textile exports rose by 7.4 percent year-on-year to $17.9 billion, foreign direct investment increased 5 percent to $2.5 billion, and remittances surged 27 percent to a record $38 billion. The Real Effective Exchange Rate (REER) dropped further to 96.6, enhancing the Pakistani rupee's competitiveness against the dollar, which would support the country's exports and keep the external account in check, Schehzad said. He also cited a rally in the Pakistan Stock Exchange, where the benchmark KSE-100 index crossed 140,000 points for the first time, with market capitalization exceeding Rs16.8 trillion (about $60 billion). He noted that Pakistan is currently ranked the fourth-best performing equity market globally in July 2025 to date. According to Topline Securities, the FY25 current account surplus of $2.1 billion (0.5 percent of GDP) marks a sharp turnaround from a $2 billion deficit in FY24, driven by a 27 percent increase in remittances and a 16 percent drop in services deficit. The goods deficit, however, grew to $27 billion. Topline added that the surplus was bolstered by record-high March remittances of over $4 billion and structural reforms that reduced the exchange rate differential between official and informal channels. Looking ahead, the brokerage house expects a mild current account deficit of $0.5–1.5 billion (0.1–0.3 percent of GDP) in FY26. The economic turnaround follows structural reforms implemented under the IMF program, including currency market liberalization, energy pricing reforms and taxation measures aimed at unlocking further global financing and restoring investor confidence.
Nikkei Asia
14-07-2025
- Business
- Nikkei Asia
Pakistan courts Chinese investors ahead of $250m panda bond debut
Bonds Move aims to cut borrowing costs and enter China's financial markets Issuances of panda bonds -- yuan-denominated bonds issued by foreign entities to raise money in China's domestic bond market -- hit $26.5 billion in 2024, marking an annual record, according to Deutsche Bank Research. © Reuters ADNAN AAMIR ISLAMABAD -- Pakistan is making all-out efforts to prepare its first-ever panda bond issuance this year, with its finance ministry holding a non-deal roadshow last week in Beijing to attract investment. "The ministry's delegation engaged in technical discussions with potential investors, underwriters, prospective guarantors, the Chinese Rating Agency, and Chinese legal counsel as part of the pre-marketing process for the debut issuance," Khurram Schehzad, adviser to the minister, posted on X.
Business Recorder
10-07-2025
- Business
- Business Recorder
Remittances from workers at a record high
KARACHI: In a historic economic milestone, Pakistan recorded its highest-ever home remittance inflows, exceeding $38 billion during the last fiscal year FY25. This unprecedented surge is credited to robust policy measures and sustained efforts by the federal government and the State Bank of Pakistan (SBP) to channelise remittances through formal avenues. SBP on Wednesday reported a significant 27 percent growth in workers' remittances during the last fiscal year. The Pakistani diaspora sent record home remittances worth $38.3 billion in July-June of FY25 compared to $30.25 billion in same period of FY24, showing an impressive increase of $8 billion. These workers' inflows are in line with the projection made by SBP Governor Jameel Ahmad, who had earlier revised the remittances target upward from $36 billion to $38 billion for the full fiscal year FY25. Advisor to the finance minister, Khurram Schehzad, has credited the record-breaking home remittances in FY25 to the growing confidence of overseas Pakistanis in the government's economic direction and policy framework. He said that with the arrival of these inflows, Pakistan not only surpassed its ambitious remittance target of $38 billion but also strengthened its external account position. 'These inflows have helped boost domestic liquidity, enhanced the country's external buffers, and significantly supported the foreign exchange reserves,' he said. Khurram said that the historic surge in remittances also reflects growing trust of overseas Pakistanis in the economy and policy measures taken by the present government. According to State Bank, Saudi Arabia is the largest contributor in remittances with a 24 percent share in the total inflows received during the last fiscal year. Inflows of remittances from Saudi Arabia rose by 26 percent to $9.345 billion in July-June of FY25 up from $7.424 billion in the same period of FY24. UAE ranked second with $7.9 billion inflows, up by 42 percent, from $5.5 billion in the previous year. Inflows from the UK and USA surged by 31 percent and 5 percent to reach $6 billion and $3.7 billion respectively in the last fiscal year. Month on Month basis, Pakistan received home remittances amounted to $3.406 billion in June 2025 compared to $3.15 billion in June 2024, depicting an increase of $248 million. However, remittances in June 2025 are slightly lower than May 2025, in which the country received $3.7 billion inflows. Interestingly, during the outgoing year, Pakistan also received all-time high monthly remittances of over $4 billion in March 2025, supported by Eid related inflows. Mohammad Sohail, CEO of Topline Securities, said that Pakistan received record remittance inflows at a critical and much needed time. 'In a year marked by economic challenges and uncertainty, however, overseas Pakistanis stepped up and demonstrated remarkable support for the country,' he said. He informed that Bangladesh has also saw record inflows of $30 billion, up by 26 percent. 'This a big source of support for both economies, helping bridge external gaps and boosting household incomes,' he added. Copyright Business Recorder, 2025
