Current account surplus Pakistan — Pakistan recorded a current account surplus of $427 million in February 2026, according to data released by the State Bank of Pakistan (SBP).
This is the highest surplus recorded since March 2025 — and marks the second consecutive monthly surplus, following a revised $60 million surplus in January 2026, signaling continued improvement in Pakistan’s external sector.
However, the current account surplus Pakistan achieved on a monthly basis contrasts with a weaker cumulative picture — on a cumulative basis, the country posted a current account deficit of $700 million during July–February FY26, compared to a surplus of $479 million in the same period last fiscal year.
Background: How the Current Account Surplus Pakistan Came About
Current account surplus countries typically achieve positive balances through strong export earnings, high remittance inflows, and controlled import spending. Pakistan’s February reading reflects exactly this pattern — with remittances leading the charge.
Pakistan’s current account had previously recorded a surplus of $121 million in January 2026, compared to a deficit of $265 million in December 2025 — reflecting sharp monthly fluctuations in the country’s external account position.
In February 2025, the current account was in deficit of $85 million — making February 2026’s $427 million surplus a sharp year-on-year turnaround for the current account surplus of Pakistan.
Details: What Drove the Current Account Surplus Pakistan in February 2026
Remittances: The Primary Engine
The inflow of overseas workers’ remittances into Pakistan stood at $3.29 billion in February 2026. Remittances increased by 5.2 percent year-on-year, compared to $3.12 billion recorded in the same month last year.
During the first eight months of the fiscal year, remittance inflows stood at $26.49 billion, up from $23.98 billion in the same period last year — a jump of 10.5 percent.
Country-wise, the UAE led remittance contributions. Inflows from Saudi Arabia declined 8 percent year-on-year to $685.5 million, while remittances from the UK amounted to $532 million in February 2026 — up 7 percent year-on-year. Overseas Pakistanis in the US sent $319.5 million, a 3 percent year-on-year increase. Remittances from EU countries reached $395 million, recording a significant 15 percent year-on-year increase.
Exports and Imports
Exports decreased by 4.86 percent year-on-year to $2.48 billion in February 2026, compared to $2.6 billion last year. In eight months of FY26, exports declined by 5.4 percent to $20.7 billion.
Imports increased by 2 percent year-on-year in February 2026 to $5.15 billion, compared to $5.05 billion last year. During eight months, imports surged by 9 percent to $41.8 billion.
Quotes
Finance Minister’s Advisor Khurram Schehzad stated that the back-to-back surpluses reflect strong remittance inflows, improving value-added exports, and disciplined imports — strengthening macroeconomic stability and easing pressure on external financing.
The State Bank of Pakistan’s Monetary Policy Committee noted that the current account surplus, amidst weak official inflows, led to continued interbank foreign exchange purchases by the SBP and the buildup in FX reserves to $16.3 billion as of February 27.
Impact: What the Current Account Surplus Pakistan Means
For Foreign Exchange Reserves
The February surplus directly supported Pakistan’s reserve position. Foreign exchange reserves stood at $21.3 billion as of February 13, 2026, including $16.2 billion held by the State Bank of Pakistan. The SBP has set a target of building reserves to $18 billion by June 2026.
For the Broader Economy
Workers’ remittances increased by 11.3 percent to $23.2 billion during July–January FY26, led by inflows from Saudi Arabia and the UAE — playing a critical role in supporting external stability.
Among current account surplus countries, Pakistan’s position remains fragile on a cumulative basis. The monthly surplus is encouraging, but the annual trade gap — driven by rising imports — continues to exert pressure on the external balance.
Conclusion
The current account surplus Pakistan recorded in February 2026 is the strongest monthly reading in nearly a year and reflects the resilience of remittance flows from overseas Pakistanis. However, declining exports and rising cumulative imports remain a structural challenge. Sustaining the current account surplus of Pakistan will depend on reversing the export decline, managing import growth, and maintaining the momentum of formal remittance inflows in the months ahead.
FAQs
What is the current account surplus?
A current account surplus occurs when a country earns more from its exports of goods, services, and remittances than it spends on imports and payments abroad — resulting in a net inflow of foreign currency into the economy.
What does it mean if the current account is in surplus?
It means the country is a net earner from the rest of the world. For Pakistan, a current account surplus helps stabilize the rupee, builds foreign exchange reserves, and reduces the need for external borrowing — all of which strengthen macroeconomic stability.
How to correct a current account surplus?
A surplus can be managed by boosting domestic investment, increasing productive imports, or allowing the currency to appreciate gradually. In Pakistan’s case, however, the priority remains sustaining and expanding the surplus through export growth and continued remittance inflows rather than correcting it.
