In a significant turnaround, Pakistan's current account recorded a surplus of $121 million in January 2026, driven by increased remittances and stronger export performance, according to the State Bank of Pakistan. This improvement contrasts with the cumulative current account deficit of $1.07 billion for the first seven months of FY 2025-26, which is a stark decline from a surplus of $564 million during the same period last year. Analysts have noted that the rise in remittances has helped offset import pressures, stabilizing the external accounts despite ongoing challenges. SBP Governor Jameel Ahmad indicated that the current account deficit is expected to remain between zero and one percent of GDP for the fiscal year, suggesting a cautious optimism about the economic outlook.