Pakistan posts $459 million current account surplus in May

Pakistan recorded a current account surplus of USD 459 million in May 2026, a sharp improvement from a deficit of USD 44 million in the same month a year earlier, according to data released by the State Bank of Pakistan.

The latest figures indicate continued resilience in the country’s external account, supported largely by workers’ remittances and moderated import growth.

However, cumulative data for the first 11 months of fiscal year 2025-26 showed the current account surplus narrowing significantly to USD 255 million, compared with a surplus of USD 1.618 billion during the corresponding period of the previous fiscal year.

The slowdown suggests that despite monthly improvements, pressures from a widening trade deficit and stronger import demand have reduced the external account cushion built up over the previous year.

Pakistan ended fiscal year 2024-25 with a current account surplus of USD 1.838 billion, marking a notable turnaround from years of recurring deficits and helping stabilize foreign exchange reserves.

Economists say the current account position remains a key indicator closely watched by policymakers and international lenders, as it reflects the country’s ability to meet external financing needs without accumulating excessive debt.

The May surplus comes as Pakistan seeks to maintain macroeconomic stability under its reform program while supporting economic growth and managing external sector risks.

Analysts noted that sustaining a current account surplus through the remainder of the fiscal year will depend on the pace of import growth, export performance, and inflows from overseas Pakistanis.