Pakistan current account surplus rises significantly in March, showing a strong recovery compared to the previous month. Fresh data released by the State Bank revealed that the surplus reached $1.07 billion, a sharp jump from $231 million recorded in February.
This marks the third straight month of surplus, reflecting improved external account performance. The rise came mainly due to lower deficits in goods and services trade, along with steady inflows of remittances from overseas Pakistanis.
However, on a yearly basis, the situation still shows some pressure. The March surplus is about 16 percent lower compared to the same period last year. For the first nine months of the current fiscal year, the overall current account balance remained nearly flat, posting a surplus of just $8 million. This is a sharp drop from the $1.67 billion surplus recorded during the same period last year.
At the same time, Pakistan current account surplus rises alongside financial support from friendly countries. The country recently received $2 billion from Saudi Arabia, which helped ease pressure on foreign exchange reserves. This inflow came just ahead of a major loan repayment to the United Arab Emirates.
Economic experts say this financial support offers short-term relief. It strengthens reserves, improves market confidence, and helps stabilize the exchange rate. However, they also point out that such inflows are temporary and increase external liabilities, rather than fixing the core issues in the economy.
Analysts believe the recent improvement is partly due to reduced imports, which shows that demand management policies are working. At the same time, it also suggests that economic activity within the country remains slow, as growth driven by exports is still limited.
In another development, Saudi Arabia has pledged an additional $3 billion in deposits and extended its existing $5 billion support facility for three more years. This move is expected to provide further stability to Pakistan’s balance of payments position.
Despite these positive developments, pressure on reserves continues. The central bank reported a decline of over $1.3 billion in its reserves, bringing the total down to $15.1 billion during the week ending April 10. The drop mainly occurred due to the repayment of a $1.426 billion Eurobond.
Overall, while Pakistan current account surplus rises and signals short-term stability, experts believe sustainable improvement will depend on stronger exports and long-term economic reforms.
