KARACHI: Pakistan’s current account posted a significant surplus of $1,070 million in March 2026, a substantial jump from the $231 million surplus recorded in the previous month, according to data released by the State Bank of Pakistan (SBP) on Thursday.
The latest figures reveal a strengthening external position, driven largely by a robust increase in workers’ remittances and a narrowing trade deficit in services.
The SBP report suggests that the primary catalyst for the March surplus was the surge in secondary income, which reached $4,076 million. This was underpinned by workers’ remittances, which climbed to $3,831 million in March compared to $3,288 million in February.
The trade balance also showed signs of improvement. While the deficit on trade in goods narrowed slightly to $2,376 million from $2,685 million in February, the deficit in services saw a more dramatic reduction, falling to just $23 million in March from $124 million the month prior.
On a quarterly basis, the current account for the Jan-Mar FY26 period recorded a surplus of $1,369 million, thus marking a notable turnaround from the first two quarters of the fiscal year, which saw deficits of $737 million and $624 million respectively.
State Bank says that for the first nine months of the current fiscal year (Jul-Mar FY26), the cumulative current account surplus stands at $8 million, recovering from the deeper deficits witnessed earlier in the year.
The financial account saw a net inflow of $1,079 million in March.
Portfolio investment in Pakistan recorded a net outflow of $452 million, while direct investment in the country stood at $168 million for the month.
The SBP’s gross foreign exchange reserves were reported at $17.69 billion at the end of March 2026, and when excluding specialized deposits (CRR/SCRR), the reserves stood at $16.49 billion.
Analysts, however, suggest that while the surplus provides much-needed breathing room for the economy, maintaining this momentum will depend heavily on the continued flow of remittances and the management of the import bill as economic activity picks up.
