Key Points:
- $427m current account surplus in February 2026, highest since March 2025
- Foreign direct investment rises 24 per cent month-on-month
- Remittances grow 5 per cent MoM, up 11 per cent YoY in 8MFY26
- IT exports climb 19 per cent YoY, nearing $3 billion in 8MFY26
- Forex reserves hit a four-year high, improving import cover
- Large-scale manufacturing posts double-digit growth in January 2026
ISLAMABAD: Pakistan’s economy is showing signs of strengthening stability and growth momentum supported by rising remittances, foreign investment, and steady export growth despite persistent regional and global challenges.
The country recorded a current account surplus of $427 million in February 2026, marking its strongest monthly performance since March 2025.
The surplus reflects a combination of resilient remittance inflows, export growth, and relatively contained imports.
Foreign direct investment increased by 24 per cent on a month-on-month basis in February, indicating renewed investor confidence in Pakistan’s economic trajectory.
Analysts view the rise as a sign of gradual normalisation in capital inflows after a prolonged period of external sector stress.
Remittances, a key source of foreign exchange, grew by 5 per cent compared to the previous month and rose 11 per cent year-on-year during the first eight months of fiscal year 2026.
The technology sector continues to support export earnings, with IT and tech exports reaching $365 million in February, up 19 per cent year-on-year. Cumulative IT exports have approached $3 billion in 8MFY26, reflecting a 20 per cent increase over the same period last year.
Recent Key Positive Macro Developments in Pakistan
– Pakiatan posted largest Current Account Surplus of $427 million in Feb-26 (after Mar-25).
– Foreign Direct Investment rose 24% MoM in Feb-26.
– Remittances flow grew 5% MoM, and up 11% YoY in 8MFY26.
– IT/Tech Exports at…
— Khurram Schehzad (@kschehzad) March 17, 2026
Pakistan’s foreign exchange reserves have climbed to a four-year high, strengthening the country’s import coverage and providing a buffer against external shocks amid ongoing global economic uncertainty.
On the domestic front, industrial activity is gaining momentum. Large-scale manufacturing expanded by approximately 12 per cent month-on-month and 11 per cent year-on-year in January 2026, bringing cumulative growth to around 6 per cent in the first seven months of the fiscal year.
Global oil prices have also eased from the peak near $120 a barrel, tested after the eruptions of the Iran War, with Brent crude trading near $102 per barrel and West Texas Intermediate around $95/barrel.
The government has secured energy supplies for March and most of April by building fuel stocks, alongside implementing conservation and austerity measures to ensure uninterrupted economic activity, according to a Finance Minister’s adviser.
“Despite external and regional challenges, strengthening macro fundamentals is helping build buffers and a stronger foundation to face future challenges with greater resilience,” wrote Khurram Schehzad, advisor to the Finance in X post. \
Notwithstanding these positive indicators, economists caution that risks remain from external pressures. Highlighted risk factors include geopolitical tensions, commodity price volatility, and global financial tightening.
However, they acknowledge that improving macroeconomic indicators seems to be helping Pakistan build resilience and strengthen its capacity to absorb future shocks.
