Pakistan’s current account surplus widened sharply in March, as lower goods and services trade deficits combined with strong remittances to improve the country’s external balance. State Bank of Pakistan data showed the surplus rose to $1.07 billion in March from $231 million in February, marking the third straight monthly surplus this year. Official SBP balance-of-payments data also reflects a March 2026 current account surplus of about $1.07 billion.
Even so, the surplus was down 16% from a year earlier. Pakistan posted a current account surplus of only $8 million in the first nine months of FY26, compared with $1.674 billion in the same period last fiscal year.
The latest balance-of-payments figures arrived as Pakistan also received financial support from Saudi Arabia. SBP received $2 billion from Saudi Arabia’s Ministry of Finance with a value date of April 15, 2026. Public reporting and official SBP-linked updates also reflect that $2 billion inflow.
Economists said the March result reflects two forces at once. On the one hand, resilient remittances helped support the external account. On the other hand, import compression appears to have played a major role.
That matters because a surplus driven mainly by weaker imports does not necessarily point to strong underlying growth. Former finance ministry adviser Dr Khaqan Najeeb said the result suggests demand management is working, but also shows subdued domestic activity rather than export-led strength.
Saudi Deposit Helps Reserves, But Pressure Remains
The Saudi inflow gave Pakistan short-term breathing space. It helped strengthen SBP reserves, bolster confidence, and ease pressure ahead of an upcoming $3.5 billion repayment to the UAE.
However, the inflow is debt-creating and reversible, rather than a structural improvement in the balance of payments. That means it works more as a liquidity buffer than a lasting solution.
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The pressure on reserves remains visible in the latest SBP figures. The central bank’s reserves fell by $1.321 billion to $15.1 billion in the week ending April 10, while total reserves dropped to $20.525 billion. The decline was linked to a $1.426 billion repayment on Pakistan’s sovereign Eurobond. The SBP reserve data publicly available on April 9 also showed reserves near that level before the Saudi inflow.
The March surplus offers a positive headline for Pakistan’s external account, especially after recent financing stress. Yet the broader picture remains mixed because reserve pressures, debt repayments, and weak structural export performance still matter.
That is why the latest figures are important but not decisive. They show improvement in the near term, while also underlining how much Pakistan still depends on remittances, external support, and careful reserve management to stay stable
