Current account posts $459 million surplus as remittances hit all-time high
ISLAMABAD, June 17, 2026 — Pakistan’s current account swung to a surplus of $459 million in May 2026, reversing a deficit of $276 million recorded in April, as record-high remittances and lower imports strengthened the country’s external position.
The latest data lifted the cumulative current account balance for the first eleven months of fiscal year 2025-26 (11MFY26) to a surplus of $255 million, compared with a deficit of $204 million in the same period last year.
Record Remittances Support External Account
Analysts attributed the sharp improvement primarily to record workers’ remittances, which reached $4.251 billion in May, the highest monthly inflow on record.
The strong inflows from overseas Pakistanis helped offset the trade deficit and provided crucial support to the country’s balance of payments.
The secondary income account recorded inflows of $4.421 billion during the month, while outflows remained limited at $38 million.
Trade Deficit Remains Significant
Pakistan continued to post a sizeable deficit in merchandise trade despite the improvement in the overall current account.
Goods exports stood at $2.368 billion in May, while imports were recorded at $5.686 billion, resulting in a trade deficit of $3.318 billion.
Economists said the figures underscore Pakistan’s continued dependence on imported goods despite efforts to boost exports and contain external imbalances.
Services Sector Records Surplus
The services sector provided additional support to the external account.
Services exports amounted to $837 million, while imports were $809 million, generating a services trade surplus of $28 million during the month.
The positive balance helped offset some of the pressure from the goods trade deficit.
Primary Income Account Stays Under Pressure
The primary income account, which includes profit repatriation, investment income and interest payments, remained in deficit.
Pakistan recorded a negative balance of $634 million in May, reflecting ongoing external payment obligations.
Outlook for External Sector
Economists said the sustainability of Pakistan’s current account position will depend on continued remittance growth, stronger exports and prudent import management.
The surplus recorded in May is expected to support foreign exchange reserves and strengthen overall macroeconomic stability.
However, analysts cautioned that maintaining a sustained surplus over the longer term will require structural improvements in exports, investment inflows and productivity.
With remittances reaching record levels and import growth remaining contained, Pakistan’s external sector has shown renewed resilience heading into the final month of FY2025-26.
