Pakistan posts $459mn C/A surplus in May 2026

Pakistan’s current account posted a massive surplus of $459 million in May 2026, data released by the State Bank of Pakistan (SBP) showed on Wednesday.

The surplus follows a deficit of $276 million recorded in April 2026 and a deficit of $44 million in May 2025.

The surplus came from significantly higher remittance inflows and a marginal increase in exports during the month.

“The primary driver of the current account surplus was record-high remittance inflows of $4.25 billion, which more than offset the goods trade deficit,” Waqas Ghani, Head of Research at JS Global, told Business Recorder.

In May 2026, the country’s total exports of goods and services amounted to $3.21 billion, up over 1% from $3.17 billion in the same month of the previous year.

Meanwhile, total imports clocked in at $6.49 billion in May 2026, up nearly 2% year-on-year from $6.39 billion in the same month last year, according to SBP data.

During May 2026, Pakistan’s workers’ remittance inflows clocked in at $4.25 billion, as compared to $3.69 billion in the same month last year, reflecting an increase of 15.4% on a yearly basis.

During the 11MFY26, the current account recorded a cumulative surplus of $255 million, down 84%, as compared to a surplus of $1.62 billion recorded in the same period last fiscal.

The surplus underscores the continued strengthening of Pakistan’s external position, said Advisor to the Finance Minister Khurram Schehzad.

“Four surpluses in five months! A stronger external account is the foundation of sustainable high economic growth,” he added.

Pakistan’s foreign exchange reserves (excluding CRR/SCRR) rose to $17.27 billion, reflecting a substantial 49% rise year-on-year, as compared to $11.62 billion, indicating stronger external buffers despite ongoing structural pressures on the current account.

Pakistan’s REER Index

Pakistan’s Real Effective Exchange Rate (REER) has increased to 106.15 in May 2026 compared to 105.84 in April 2026.

A REER above 100 means the country’s exports are uncompetitive, while imports are cheaper. The situation reverses when REER stands below 100 on the index.

Meanwhile, the Nominal Effective Exchange Rate Index (NEER) increased by 0.03% MoM in May 2026 to a provisional value of 37.9 from 37.89 in April 2026.

What is REER?

As per the central bank, REER is an index of the price of a basket of goods in one country relative to the price of the same basket in that country’s major trading partners.

“The prices of these baskets are expressed in the same currency using the nominal exchange rate with each trading partner. The price of each trading partner’s basket is weighted by its share in imports, exports, or total foreign trade,” the SBP website says.