ISLAMABAD — Pakistan recorded a current account surplus of $427 million in February 2026, reflecting improved external sector stability as remittances stayed strong and the import bill remained contained, according to fresh data released by the State Bank of Pakistan (SBP).
The latest figures show a sharp improvement compared with the $68 million surplus recorded in January 2026, marking the second consecutive monthly surplus for the country.
Officials say the improvement indicates stabilisation in Pakistan’s external account after months of pressure caused by higher imports and a widening trade deficit.
Remittances and Lower Imports Support Balance
Economic managers credit the February surplus to strong inflows of workers’ remittances and a relatively controlled import bill, which helped offset Pakistan’s trade gap.
Government officials also noted that the February figure represents the highest monthly current account surplus since March 2025, signalling a gradual recovery in the country’s external sector.
Financial analysts say overseas Pakistanis continue to provide a crucial buffer to the economy, as remittances help finance the trade deficit and support foreign exchange reserves.
Fiscal Year Balance Still in Deficit
Despite the improvement in recent months, the overall current account position for the ongoing fiscal year remains negative.
According to SBP data, Pakistan recorded a current account deficit of about $700 million during July–February FY2025-26, compared with a surplus of $479 million during the same period last year.
The deficit earlier in the fiscal year largely resulted from higher imports of machinery, fuel, and industrial raw materials.
External Sector Shows Signs of Stability
Economic advisers say the latest surplus reflects stabilisation in Pakistan’s balance of payments, supported by improved remittance flows, cautious import management, and moderate export performance.
Officials believe the trend could help strengthen investor confidence and ease pressure on the country’s foreign exchange reserves if the momentum continues in the coming months.
However, economists warn that sustained stability will depend on export growth, stable remittances, and disciplined import management as Pakistan navigates global economic uncertainty.
The State Bank is expected to closely monitor external sector developments as it prepares future monetary policy decisions aimed at maintaining economic stability.