Current account surplus jumps to $1.07bn in March
Remittances and lower deficits pushed Pakistan’s current account surplus above $1bn
Published April 17, 2026
- Third consecutive monthly surplus recorded.
- Trade deficits narrow significantly.
- Saudi inflows support reserves.
Pakistan's current account surplus widened sharply in March from the previous month, The News reported, supported by lower goods and services trade deficits and strong remittances.
State Bank of Pakistan data released on Thursday showed the surplus rose to $1.07 billion in March, up from $231 million in February, though it was down 16% from a year earlier. It marked the third consecutive monthly surplus this year.
Pakistan posted a current account surplus of just $8 million in the first nine months of FY26, compared with $1.674 billion in the same period last fiscal year.
The balance of payments data came after the country received funds from Saudi Arabia to help shore up foreign exchange reserves and manage an upcoming loan repayment to the United Arab Emirates.
"The State Bank of Pakistan has received funds of $ 2 billion from the Ministry of Finance, Kingdom of Saudi Arabia in the value date of April 15, 2026," the SBP said on the social media platform X.
The $2 billion inflow from Saudi Arabia is a liquidity-supporting, non-market buffer, said Dr Khaqan Najeeb, former adviser to the Ministry of Finance. "It strengthens SBP reserves, improves near-term confidence and supports exchange rate stability," Najeeb said. "It also helps cover shortfall of return of money to the UAE. However, as a deposit-type inflow, it is debt-creating and reversible, not a structural improvement in the balance of payments," he added.
According to Najeeb, the current account surplus in March signals compression in imports alongside resilient remittances. "This suggests demand management is working but also reflects subdued domestic activity rather than export-led strength," he said.
The government announced that Saudi Arabia has pledged an additional $3 billion in deposits for Pakistan and has extended its existing $5 billion facility for another three years to help support the South Asian nation’s balance of payments. Pakistan is facing a $3.5 billion debt repayment to the UAE this month, which has put a strain on its FX reserves.
The central bank’s reserves dropped by $1.321 billion to $15.1 billion in the week ending April 10. Reserves held by the country also declined by $1.37 billion to $20.525 billion, while those of commercial banks fell by $50 million to $5.445 billion. The decline in reserves is attributed to the repayment of $1.426 billion against Pakistan Sovereign Eurobond, the SBP said in the statement.
