KARACHI-UNS:Pakistan recorded a sharp rise in its current account surplus in March, which climbed to $1.07 billion from $231 million in February, according to data released by the State Bank of Pakistan on Thursday.
The increase was driven by a reduction in goods and services trade deficits along with robust remittance inflows.
Despite the monthly improvement, the surplus was 16% lower compared to the same month last year. March marked the third consecutive month of surplus in 2026, signaling short-term stability in the external account.
For the first nine months of FY26, Pakistan posted a modest surplus of $8 million, a significant decline from $1.674 billion recorded during the same period in the previous fiscal year.
The balance of payments received additional support after Pakistan secured $2 billion in funding from Saudi Arabia. The central bank confirmed that the amount was received on April 15 to help strengthen foreign exchange reserves and meet upcoming external obligations, including a $3.5 billion repayment due to the United Arab Emirates.
Economic analysts noted that while the inflow provides temporary relief, it is not a long-term solution. Former finance adviser Dr Khaqan Najeeb stated that the funds would bolster reserves, improve market confidence, and support exchange rate stability. However, he cautioned that such deposits are debt-creating and reversible, offering limited structural improvement to the balance of payments.
Najeeb further explained that the March surplus reflects controlled imports and sustained remittances, indicating effective demand management but also pointing to subdued domestic economic activity rather than export-led growth.
Meanwhile, Pakistan’s foreign exchange reserves witnessed a decline. The central bank reported a drop of $1.321 billion, bringing its reserves down to $15.1 billion in the week ending April 10.
Total national reserves fell to $20.525 billion, while commercial bank reserves stood at $5.445 billion. The decrease was primarily due to a $1.426 billion repayment against a sovereign Eurobond, the SBP said.
