LAHORE: Pakistan recorded a current account surplus of $427 million in February, marking its strongest monthly performance since March last year, according to data released by the State Bank of Pakistan.
The latest figure also represents the second consecutive monthly surplus, following January’s $60 million surplus, signalling a gradual improvement in the country’s external position.
Despite the recent gains, the broader picture remains mixed. During the first eight months of the current fiscal year (July-February FY26), Pakistan posted a cumulative current account deficit of $700 million, sharply contrasting with the $479 million surplus recorded in the same period last year.
Officials, however, see the recent trend as encouraging. The finance minister’s advisor, Khurram Shehzad, described February’s numbers as a sign of strengthening fundamentals, pointing to robust remittance inflows, growth in value-added exports, and controlled import expansion as key drivers behind the improvement.
Analysts echo this view, noting that higher remittances and a reduction in the income deficit played a crucial role in offsetting the persistent trade gap. The narrowing of external imbalances has also helped ease pressure on foreign financing needs.
While risks remain, particularly due to ongoing regional tensions, the back-to-back surpluses suggest that Pakistan’s external account is stabilizing.
With adequate buffers in place, the development is being seen as a step toward sustainable economic recovery and a potential boost to investor confidence.
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