The current account in Pakistan showed a surplus of $479 million in February. This offers some relief for the country’s external position. It may also help reduce the deficit in the current fiscal year. According to data released by the State Bank of Pakistan, the current account continues to show a positive trend. The balance of payments has improved, but the economy still faces challenges.
Trend shifts after earlier deficits
The initial six months of the fiscal year 2025-26, the current account of Pakistan was in deficit. The first quarter, from July to September 2025, the deficit was $737 million. During the second quarter, from October to December, the deficit was $458 million.
However, there was a change in the third quarter. The current account showed a surplus of $85 million in January. This was followed by a stronger surplus of $479 million in February.
Economists say Pakistan improved the balance mainly by reducing imports. However, this strategy has also slowed economic activity. As a result, the country’s gross domestic product growth barely reached 3 percent in the last fiscal year.
Rising imports and global pressures
Additionally, imports of goods continued to increase during the fiscal year. From July to February, imports rose to $41.823 billion. During the same period last year, imports stood at $36.433 billion.
Furthermore, exports and imports of services also increased. Service exports rose by about $1 billion. Service imports increased by $1.1 billion.
However, financial analysts say it may become difficult to maintain the surplus. International oil prices have already risen sharply. They have increased by almost 80 percent in recent months. If tensions in the Middle East continue, the pressure on Pakistan’s current account may increase.
Overall, market analysts also note that the latest data from the central bank does not yet reflect the impact of the regional conflict that began on February 28.
