Pakistan Current Account Surplus Hits $1.07bn in March
Pakistan’s current account surplus Pakistan surged to $1.07 billion in March. This marks a strong jump from $231 million in February. The rise reflects lower trade deficits and steady remittance inflows. As a result, the country recorded its third straight monthly surplus this year.
Key Drivers Behind the Growth
Lower imports played a major role in this improvement. At the same time, overseas workers sent strong remittances. However, experts warn that this growth is not entirely positive. It also shows weak domestic demand. In other words, economic activity remains slow.
External Support Boosts Confidence
Saudi Arabia provided $2 billion in financial support. This move helped strengthen foreign exchange reserves. In addition, the support improved short term confidence in the economy. It also helped stabilize the exchange rate. However, analysts highlight a concern. This type of inflow creates debt and is not a long term fix.
Ongoing Challenges Remain
Despite the monthly gains, the broader picture looks mixed. The surplus for the first nine months of FY26 stands at just $8 million.
This figure is far lower than last year’s $1.67 billion. Therefore, sustained improvement remains uncertain. Meanwhile, Pakistan faces a $3.5 billion repayment to the UAE. This obligation continues to pressure reserves.
Decline in Foreign Exchange Reserves
The country’s reserves dropped significantly in April. The central bank reported a fall of $1.32 billion in one week. This decline followed a major external debt repayment. As a result, total reserves now stand at $20.5 billion.
Although support from allies helps, structural issues persist. Therefore, long term stability will require stronger exports and economic growth.
