ISLAMABAD (MNN); Pakistan recorded a current account surplus of $100 million in November, offering temporary relief after consecutive deficits earlier in the ongoing fiscal year, according to data released by the State Bank of Pakistan (SBP).
The improvement follows a $291 million current account deficit posted in October. However, central bank figures indicate that the November surplus was largely achieved by restricting imports rather than through stronger export growth.
During the previous fiscal year, FY25, Pakistan surprised observers by posting a net current account surplus of $1.932 billion, which the government hailed as a major economic achievement. That surplus, however, was also attributed to strict import controls, a policy that kept overall economic growth below target levels. Policymakers have yet to outline a clear plan to transition away from an import-dependent growth model.
The SBP data shows that the November surplus was significantly lower than the $709 million surplus recorded in the same month last year. In November, exports declined by 10 percent while imports fell by 12 percent compared to October, contributing to the positive balance.
Despite the November improvement, the cumulative current account balance for the first five months of FY26, from July to November, stands at a deficit of $812 million. This contrasts with a surplus of $503 million during the same period in the previous fiscal year.
The trade deficit has widened sharply, reaching $37.17 billion in the first five months of FY26, complicating efforts by economic managers to control external imbalances. Goods exports during this period amounted to $12.79 billion, down from $13.212 billion a year earlier, while imports rose to $25.559 billion from $23.011 billion, further worsening the trade gap.
Meanwhile, workers’ remittances have remained strong, averaging around $3.2 billion per month and surpassing last year’s record inflows of $38 billion. The government now expects remittances to reach $40 billion in FY26.
Robust remittance inflows have allowed the central bank to purchase dollars from the interbank market, strengthening foreign exchange reserves and helping meet external debt obligations. Many debt servicing payments in FY25 were rolled over, and a similar situation persists in FY26.
Briefing analysts after the announcement of the monetary policy, SBP Governor Jameel Ahmed said Pakistan’s external debt servicing requirement for FY26 stands at $25.8 billion. Of this amount, $9.7 billion has already been paid or rolled over, while net external debt servicing for the remainder of the fiscal year is estimated at $6.9 billion, excluding rollovers.
