Pakistan: Current account surplus to decline to $255 million in May 2026

Pakistan’s current account surplus narrowed significantly in May 2026, as rising imports partially offset gains from remittances and services exports.

According to data released by the State Bank of Pakistan, the country’s current account surplus in May 2026 was $255 million, significantly lower than the $459 million surplus recorded in April.

The overall current account surplus during the first eleven months of fiscal year 2026 (July-May) was $1.62 billion.

The main reason for the decline in the surplus is the increase in the trade deficit, where imports grew faster than exports.

During July-May FY26:

• Imports: $58.46 billion (8% increase)
• Exports: $28.25 billion (5% decrease)
• Trade deficit: Over $30.2 billion

Remittances continue to be a major support for the country’s external accounts. Remittances reached $38.11 billion during this period, showing an increase of over $3 billion over the previous year.

Encouraging figures were also revealed from the services sector. Exports of services increased to $9.1 billion during July-May FY26, from $7.75 billion last year.

Exports of telecommunications, computer and information services reached $4.18 billion.

However, the primary income deficit (which includes profit repatriation and interest payments) remained at $7.65 billion, which continues to put pressure on the external accounts.

Experts say that the real challenge is whether rising imports lead to increased industrial productivity and exports.