KARACHI: Pakistan’s current account posted a USD 459 million surplus in May 2026 supported by record-breaking inflows of workers’ remittances, the State Bank of Pakistan (SBP) reported on Wednesday.
The SBP data highlights a continued improvement in Pakistan’s external and current account rebounded from a deficit in April to a surplus in May. Previous Month (April) deficit was mainly due to a widening of the trade deficit amidst the surge in energy imports in April, which more than offset the resilient workers’ remittances.
According to SBP, Pakistan recorded a current account surplus of USD 459 million in May 2026, marking a strong reversal from a USD 276 million deficit in April 2026. On a year-on-year basis, the May 2026 surplus also marked a significant improvement from the USD 44 million deficit recorded in May 2025.
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The recovery in May 2026 was driven by record workers’ remittances and easing import payments. The country received an all-time high USD 4.25 billion in home remittances during the month, providing strong support to the external account position.
The realization of sizable workers’ remittances contained the current account deficit in FY26 to the lower end of the earlier projected range, despite the challenging external environment.
Monthly surplus in May 2026 has also pushed the cumulative current account for the first eleven months of this fiscal year (FY26) into surplus territory. Current account posted USD255 million surplus in July-May of FY26 compared to a surplus of USD 1.618 billion during the corresponding period last year (FY25).
The SBP has already projected that current account deficit to remain in the range of 0-1 percent of GDP by the end of the fiscal year.
On the financing side, increase in official inflows provided critical support in meeting external obligations. Massive foreign inflows and home remittances, facilitated ongoing FX purchases and build-up in SBP’s FX reserves. SBP’s foreign exchange reserves are already projected to reach USD 18 billion by end June 2026.
Analysts believed that the stronger external account is expected to support foreign exchange reserves, restoring investor confidence, and laying a stronger foundation for sustainable economic growth.
Copyright Business Recorder, 2026