Pakistan records a current account surplus of $1.07bn in March

Pakistan’- (Web Desk) – Pakistan’s current account surplus widened sharply in March from the previous month, The News reported, supported by lower goods and services trade deficits and strong remittances.

State Bank of Pakistan data released on Thursday showed the surplus rose to $1.07 billion in March, up from $231 million in February, though it was down 16% from a year earlier. It marked the third consecutive monthly surplus this year.

Pakistan posted a current account surplus of just $8 million in the first nine months of FY26, compared with $1.674 billion in the same period last fiscal year.

Pakistan’s balance of payments data brought some encouraging news, coming shortly after the country received a significant financial boost from Saudi Arabia. The kingdom stepped in to help strengthen Pakistan’s foreign exchange reserves and assist with an upcoming loan repayment to the United Arab Emirates.

State Bank of Pakistan has received funds of US$2 billion from Ministry of Finance, Kingdom of Saudi Arabia in the value date of 15April2026.

— SBP (@StateBank_Pak) April 16, 2026

The State Bank of Pakistan confirmed that it received $2 billion from Saudi Arabia’s Ministry of Finance on April 15, 2026 — a much-needed injection of funds at a critical time.

Financial expert Dr Khaqan Najeeb, a former adviser to Pakistan’s Ministry of Finance, described the Saudi inflow as a confidence-boosting buffer rather than a permanent fix. He noted that while the funds help stabilize the rupee and cover part of the UAE repayment gap, they come as a deposit — meaning the money is borrowed and will eventually need to be paid back. In his words, it is not a lasting improvement to Pakistan’s financial health.

On the trade front, Najeeb pointed out that March’s current account surplus reflects lower imports and steady remittances from overseas Pakistanis. While this shows that economic policies are having some effect, he cautioned that it also points to sluggish domestic activity rather than a genuine rise in exports.

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Adding to the relief, Saudi Arabia has pledged an additional $3 billion in deposits for Pakistan and extended its existing $5 billion facility for another three years — a sign of continued bilateral support.

The timing matters because Pakistan faces a $3.5 billion repayment to the UAE this month, which has already put visible pressure on reserves. The central bank’s reserves fell by $1.32 billion to $15.1 billion in the week ending April 10, largely due to a $1.43 billion Eurobond repayment. Overall national reserves also dipped to $20.5 billion, while commercial bank holdings slipped slightly to $5.45 billion.