According to AHCML Research,  Pakistan’s current account (CA) recorded its third consecutive monthly surplus in Mar’26, clocking in at USD 1,070mn, reflecting a sharp 363% MoM increase from USD 231mn in Feb’26. This brings the cumulative 9MFY26 current account into marginal surplus territory of USD 8mn, significantly lower than the USD 1,755mn surplus recorded in 9MFY25, indicating a notable contraction on a comparative basis despite recent monthly improvements.

Trade in Goods

·         In Mar’26, the goods trade deficit stood at USD 2,376mn. Imports fell by 5%MoM to USD 4,902mn (from USD 5,165mn in Feb’25), while Exports increased 2%MoM to USD 2,526mn (from USD 2,480mn) but declined by 8%YoY from Mar-25’s USD 2,759mn.

·         Despite MoM trade balance fell by 12% Cumulatively for 9MFY26 widened by 26% to USD 23,528mn, compared to USD 18,677mn in 9MFY25.

·         In Mar’26, services exports surged 13%YoY to USD 903mn (from USD 800mn in Feb 2025), though the services deficit stood at USD 23mn.

·         Cumulatively, services exports grew 17% to USD 7,348mn (from USD 6,277mn) and the services deficit decreased by 7% to USD 2,146mn (from USD 2,303mn) as services imports rose 11% to USD 9,949mn (from USD 8,580mn). The combined goods and services trade deficit for 9MFY26 stands at USD 25,674mn, a 22% increase from USD 20,980mn in 9MFY25.

Remittances driving current account Surplus

·         Remittances remained strong in Mar’26, clocking in at USD 3,831mn, reflecting a 17% YoY increase compared to USD 3,288mn in the corresponding period last year. On a cumulative basis, 9MFY26 remittances reached USD 30,319mn, marking an 8% YoY rise from USD 28,031mn in 9MFY25.

·         The sustained strength in remittance inflows has played a pivotal role in supporting the external account, with continued current account surpluses providing the necessary impetus to keep the cumulative current account balance in positive territory.