Pakistan’s current account returns to surplus in January

Pakistan’s current account recorded a surplus of $121 million in January, rebounding from a $265 million deficit in December, according to official data released Tuesday.

The improvement also marks a turnaround from January 2025, when the current account posted a $393 million deficit.

Despite the monthly gain, the broader fiscal picture remains weak. In the first seven months of the current fiscal year, the current account showed a deficit of $1.074 billion, compared with a $564 million surplus during the same period last year.

For the full fiscal year 2025, the external account had strengthened considerably, registering a $1.932 billion surplus against a $2.072 billion deficit the previous year.

An analyst said the January surplus indicates some stabilization in external flows but cautioned against overinterpreting a single month’s data.

“The return to surplus in January is encouraging and may reflect higher export receipts or contained import demand,” said an economist at a Karachi-based brokerage. “However, the cumulative deficit for the fiscal year shows that external pressures persist, and sustainability will depend on consistent inflows and disciplined import management.”

The latest figures underscore continued volatility in Pakistan’s external sector, with sharp month-to-month swings shaping the overall fiscal outlook.