KARACHI: Pakistan’s current account returned to surplus in January 2026, supported by higher inflows of workers’ remittances.
According to the State Bank of Pakistan (SBP), the current account posted a surplus of USD 121 million in January 2026, compared with a deficit of USD 265 million in December 2025. On a year-on-year basis, the external balance also improved, as it also posted USD 393 million deficit in January 2025.
During the current fiscal year, Pakistan’s external account has shown a mixed trend, alternating between deficits and surpluses on a month-to-month basis. In the first seven months of FY26, the current account recorded surpluses in three months and deficits in four.
READ MORE: Pakistan receives $3.5bn in remittances in January 2026
The account posted a deficit of USD 254 million in July 2025, which widened to USD 325 million in August before turning into a surplus of USD 100 million in September. It slipped back into a deficit of USD 291 million in October, recovered to a surplus of USD 98 million in November, and again moved into a deficit of USD 265 million in December.
Cumulatively, the current account recorded a deficit of USD 1.074 billion during July-January FY26, compared with a surplus of USD 564 million in the same period of the previous fiscal year.
The deficit remains broadly in line with expectations, as the central bank anticipates a modest external gap this year amid rising demand supported by improving industrial activity.
Although imports have increased significantly, remittance inflows have exceeded projections. Pakistan is expected to receive around USD 42 billion in workers’ remittances during the current fiscal year.
SBP Governor Jameel Ahmad has projected that the current account deficit will remain within 0-1 percent of GDP by the end of FY26.
Copyright Business Recorder, 2026
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