Record remittances push Pakistan’s C/A to $459 million surplus

Pakistan’s current account registered a massive surplus of $459 million in May 2026, according to data released by the State Bank of Pakistan on Wednesday. The latest figures mark a significant turnaround from the $276 million deficit posted in April 2026, while in May 2025, the country had reported a comparatively smaller deficit of $44 million. Analysts attributed the surplus largely to a sharp rise in overseas remittances, coupled with a slight increase in export earnings during the month. The biggest contributor was record remittance inflows of $4.25 billion, which helped offset Pakistan’s widening trade gap. During May, the country’s exports of goods and services reached $3.21 billion, reflecting an increase of more than 1 per cent compared to $3.17 billion recorded in the same month last year. At the same time, imports stood at $6.49 billion, showing a year-on-year rise of nearly 2 per cent from $6.39 billion in May 2025, according to central bank data. Workers’ remittances also posted impressive growth, climbing to $4.25 billion in May 2026, compared to $3.69 billion a year earlier, marking an annual increase of 15.4 per cent. However, on a cumulative basis, the current account surplus for the first 11 months of FY26 stood at $255 million, considerably lower than the $1.62 billion surplus recorded during the same period last fiscal year, representing a decline of 84 per cent. Commenting on the development, Advisor to the Finance Minister Khurram Schehzad said the figures reflect improving stability in Pakistan’s external sector. He noted that the country has now recorded four current account surpluses in the last five months, calling a stronger external account essential for sustaining long-term economic growth. SBP decides to keep policy rate unchanged at 11.5%