KARACHI: The current account surplus for Pakistan during the month of March 2026 stood at $1.07 billion, which was among the best monthly figures in recent times and marked the third straight month of positive figures.
Statistics provided by the State Bank of Pakistan indicate a positive trend in the country’s external account due to better flows, restricted imports, and the continued process of policy changes for economic stability.
In January, the country made a surplus of $68 million, which went up to $231 million in February. The most recent number was the second-largest monthly surplus in history, only surpassed by the record high set in March 2025, when the surplus was $1.2 billion.
The positive change has helped reverse the trend in the external account balance for the fiscal year 2026. Pakistan had been facing a deficit of about $700 million but managed to swing into a positive balance of $8 million by March.
The economists attributed the development mainly to high remittance receipts and efficient management of imports. Pakistani expatriates kept on sending money, contributing to external stability and cushioning any external shocks.
The government maintained tight control over the flow of imports because of the high international prices of energy and allowed imports of necessary commodities only.
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Improves Pakistan’s economic outlook
Export performance was another reason that the improved position was achieved due to increased efforts made by the government to promote exports and facilitate greater market access. Remittances and export performance, combined with import controls, led to a balanced foreign account.
The surplus in the current account has minimized the requirement for foreign borrowing, which has helped in improving Pakistan’s capability to settle its international payments. In addition, a better external position helps in stabilizing the exchange rate.
The market players stated that continued improvements in the current account balance convey a good signal to the markets and the banks. The players further emphasized that continued surpluses will contribute to restoring confidence in the economy and external vulnerability perceptions.
The State Bank will continue to keep a close watch on foreign exchange flows to ensure that the foreign exchange market remains stable. With increased reserve levels and improved external balances, policymakers can be more flexible in handling foreign exchange flows.
The current trend is an indication of some stabilisation efforts in the economy that have been underway for the past few months, according to analysts. The stabilisation efforts involve fiscal policy, demand management, and structural policies.
However, they cautioned that the maintenance of the surplus will depend on various factors, including the global prices of raw materials, exports, and remittances. Any sudden increase in the prices of fuel and imports could undermine some of their successes.
Current account surplus signals resilience
The economists also noted that sustained export growth was important for achieving sustainability. Nevertheless, it was made clear that structural reforms were still vital in ensuring efficiency, competitiveness, and diversification in the external sector environment.
The performance of the current account provides policy-makers with the opportunity to focus on reforms in the area of industrialization, energy conservation, and exports. A favorable condition for the balance of payments can help stimulate economic recovery.
In general, the statistics indicate that the external environment is improving owing to more prudent management of the balance of payments. One must note, though, that success in the future will hinge on favorable international circumstances.
