- Present account surplus reached $427 million in February.
- Exterior account stabilised with satisfactory buffers, says govt adviser.
- Khurram Schehzad phrases it key milestone for financial restoration.
KARACHI: Pakistan’s present account surplus elevated in February, as per the information from the State of Pakistan (SBP), because of the nation’s resilient remittances and decrease providers imports, The Information reported on Tuesday.
The excess stood at $427 million in February, probably the most since March 2025. The excess was $68 million in January this 12 months, whereas the present account posted a deficit of $85 million in February final 12 months.
The nation ran a deficit of $700 million in eight months of this fiscal 12 months, in contrast with a surplus of $479 million in the identical interval final 12 months.”The excess was primarily supported by sturdy remittance inflows and a notable discount within the earnings deficit, which helped offset the still-elevated commerce hole,” stated Waqas Ghani, head of analysis at JS International.
“On the similar time, decrease providers imports and contained import development additionally contributed to bettering the exterior steadiness,” Ghani stated. “Whereas the month-to-month surplus displays some easing in exterior pressures, the sustainability of this pattern will rely upon the trajectory of imports and remittance inflows within the coming months,” he added.
Adviser to the Finance Minister Khurram Schehzad wrote in a put up on X that February’s present account surplus was the very best in a single 12 months and marks the second consecutive month-to-month surplus, signalling continued enchancment in Pakistan’s exterior sector.
“The back-to-back surpluses mirror sturdy remittance inflows, bettering value-added exports, and disciplined imports (growth-driven), strengthening macroeconomic stability and easing stress on exterior financing,” Schehzad famous.
“Although challenges exist given the regional battle, Pakistan’s stabilised exterior account with satisfactory buffers is a key milestone for sustainable financial restoration and investor confidence.”
Remittances, a vital lifeline for Pakistan’s economic system, are going through dangers as a consequence of escalating battle within the Center East. Iran has halted transport within the Strait of Hormuz, which is accountable for roughly 20 per cent of the world’s oil and LNG provide, impacting refiners, petrochemical crops, energy crops and energy-intensive industries globally.
This case has resulted in what the Worldwide Power Company (IEA) has described as the most important disruption to world vitality provides in historical past, in retaliation for the strikes on Iran by the US and Israel.
In response to a current report from Perception Securities, Pakistan’s financial construction has shifted significantly over the previous few a long time, with rising reliance on remittance flows. Nevertheless, the area most affected by the present geopolitical turmoil is the Center East, which can be the most important contributor to Pakistan’s remittances, accounting for 55 per cent of complete inflows, notably from the United Arab Emirates and Saudi Arabia. Any disruption in these economies may negatively affect remittance flows if the scenario prolongs.
The sturdy development in remittances over time has partly financed Pakistan’s widening commerce deficit, the report famous. “At a time when oil costs are already elevated, the place each $5 a barrel improve in oil costs raises the import invoice by roughly $800 million yearly, and exports stay structurally constrained amid rising freight prices, any decline in remittance flows may show deadly.”
