Pakistan posts $1.1B current account surplus in March as remittances surge

Pakistan's current account swung to a surplus of $1.07 billion in March, up sharply from $231 million in February, driven by a strong jump in workers' remittances and a narrowing trade deficit, according to provisional data released by the State Bank of Pakistan.

The improvement was broad-based.

Goods imports fell to $4.9 billion from $5.17 billion in February, while exports edged up to $2.53 billion from $2.48 billion. The goods trade deficit narrowed to $2.38 billion from $2.69 billion the previous month.

On a year-on-year basis, exports declined 8.45% from $2.76 billion in March 2025, while imports were broadly flat, down 0.73% from $4.94 billion.

The services account swung to near balance, posting a deficit of just $23 million, a sharp improvement from $120 million in the same month last year, as services exports rose 16.22% year-on-year to $903 million.

The primary income deficit, which captures interest payments and profit repatriation, stood at $607 million, slightly narrower than $678 million a year earlier.

Workers' remittances provided the strongest support, rising to $3.83 billion in March from $3.29 billion in February, though they remained below the $4.05 billion recorded in March 2025.

On a cumulative basis, Pakistan's current account posted a slim surplus of just $8 million in the nine months through March, a dramatic deterioration from a $1.67 billion surplus in the same period last year.

The erosion reflects a widening goods trade gap over the fiscal year, with nine-month imports rising 7.87% year-on-year to $46.79 billion while exports declined 5.82% to $23.27 billion. Nine-month remittances rose 8.16% to $30.32 billion, partially cushioning the external position.