Pakistan’s current account surplus widened notably in March, supported by lower trade deficits and strong remittance inflows, according to data released by the State Bank of Pakistan.
The central bank reported a surplus of $1.07 billion in March, up from $231 million in February, marking the third consecutive monthly surplus this year. However, the figure was down 16% compared to the same period last year.
Despite the monthly improvement, the cumulative position remained limited, with a surplus of just $8 million in the first nine months of FY26, compared to $1.674 billion in the corresponding period of the previous fiscal year.
The external position was supported by inflows, including $2 billion received from Saudi Arabia, which the central bank said was credited on April 15. The funds are intended to help strengthen foreign exchange reserves and meet upcoming external debt obligations.
Economist Khaqan Najeeb said the inflow would improve short-term confidence and support exchange rate stability, but noted that such deposits are temporary and do not reflect structural improvement in the balance of payments.
He added that the March surplus reflects lower imports alongside steady remittances, suggesting that demand management measures are working, though also indicating subdued domestic economic activity rather than export-driven growth.
The government has also said that Saudi Arabia plans to provide an additional $3 billion in deposits and has extended its existing $5 billion facility for three more years to support Pakistan’s external financing needs.
Meanwhile, foreign exchange reserves have declined. The central bank’s reserves fell by $1.321 billion to $15.1 billion in the week ending April 10, mainly due to the repayment of $1.426 billion in sovereign Eurobond debt. Total reserves held by the country dropped to $20.525 billion, while commercial bank reserves decreased slightly.
Pakistan is also facing a $3.5 billion repayment to the United Arab Emirates, adding pressure on reserves despite recent inflows and policy support measures.