ISLAMABAD: Pakistan recorded a current account surplus of $1.07 billion in March 2026, according to data released by the State Bank of Pakistan, showing a notable increase from $231 million in February. However, the figure remained slightly lower than the $1.27 billion surplus recorded in March 2025.
Despite the monthly improvement, the broader trend highlights mounting pressure on the country’s external account. During the first nine months of fiscal year 2026, Pakistan posted a marginal surplus of just $8 million, marking a sharp decline of nearly 99 percent compared to $1.67 billion in the same period last year.
Moreover, the data suggest that intermittent monthly gains have failed to offset underlying weaknesses in the balance of payments. Analysts note that while short-term inflows and temporary factors may have supported March’s performance, structural challenges continue to weigh on the overall outlook.
Meanwhile, the weak cumulative position reflects persistent constraints, including high import costs, external debt obligations, and limited export growth. These factors have kept pressure on foreign exchange reserves despite occasional improvements in monthly figures.
In addition, recent financial inflows, including deposits from friendly countries, have provided some support to the external account. However, economists caution that such measures offer only temporary relief and do not address deeper imbalances.
Overall, while the March surplus signals a short-term recovery, the sharp contraction in the nine-month surplus underscores the fragile state of Pakistan’s external sector. Policymakers are expected to focus on sustainable measures, including boosting exports and controlling imports, to stabilise the current account going forward.
