Pakistan Posted CAD of US 103 Million for the Month of May

As expected, Pakistan has posted a current account deficit of US 103 million due to low interest rates and falling exports. Pakistan's exports are falling due to high electricity prices and a lack of funds that are creating a hurdle for Pakistan to increase exports of goods. For the month of May, Pakistan's exports are under US$2.5 billion, and imports of goods are under US$5.5 billion, which suggests that the trade deficit is too high. However, Pakistan's exports of services are increasing, and the trade balance regarding services is also decreasing, unlike goods exports. 

It is expected that the government of Pakistan will take serious steps in this regard and make the currency adjustable according to it. Some experts said that Pakistan's exports are falling due to the PKR in recent months being recorded above 100 reer, which is also one of the reasons why exports are falling and imports are increasing. Moreover, experts seem to think that they were wrong that once the interest rate goes down, then Pakistan's exports would improve; however, that was not the case. In fact, exports are falling compared to the interest rate tenure. 

Overall, the star for Pakistan was remittance inflows, which were recorded at US 3.7 billion dollars for the month of May 2025, which has reduced the current account deficit to US 103 million dollars for the month of May. It is expected that Pakistan's current deficit will be higher in June 2025 due to it being the end of the FY, and it is expected that primary income debt will be higher than in recent months. The current account deficit for the month of June can be near US 300 million dollars to 500 million dollars. If Pakistan controls imports for the month of June, then the current account deficit could be reduced.