Pakistan recorded a current account surplus of $459 million in May 2026, marking a significant improvement in the country’s external sector position, according to data released by the State Bank of Pakistan (SBP).

The latest reading represents a sharp turnaround from the current account deficit of $276 million recorded in April 2026 and contrasts with the $44 million deficit posted in May 2025.

The improvement was primarily driven by record-high workers’ remittance inflows and steady export earnings, which helped offset the impact of higher imports during the month.

According to SBP data, Pakistan’s exports of goods and services totaled $3.21 billion in May 2026, registering a modest increase of over 1% compared to the same month last year. Imports of goods and services, meanwhile, rose nearly 2% year-on-year to $6.49 billion.

A key factor behind the surplus was the strong performance of remittances. Overseas Pakistanis remitted $4.25 billion during May, representing a 15.4% increase compared to the corresponding period last year. The record inflows provided substantial support to the balance of payments and strengthened foreign exchange liquidity.

Despite the strong monthly performance, the cumulative current account surplus for the first eleven months of FY2025-26 stood at $255 million, lower than the surplus of $1.62 billion recorded during the same period of the previous fiscal year.

Meanwhile, Pakistan’s external buffers continued to improve. Foreign exchange reserves, excluding mandatory reserve requirements, increased to $17.27 billion, reflecting a 49% year-on-year rise and indicating a stronger reserve position compared to last year.

The latest data highlights continued resilience in Pakistan’s external sector, supported by robust remittance inflows, stable export performance, and improved foreign exchange reserves. Analysts believe the strengthening external position provides greater stability for the rupee and enhances the country’s ability to manage external financing requirements.

The current account surplus also offers a positive signal for policymakers as they seek to maintain macroeconomic stability while supporting economic growth in the upcoming fiscal year.