Pakistan's external sector has recorded its strongest performance of the year, with a current account surplus of $427m in February, raising hopes of stabilisation even as regional tensions continue to cast uncertainty over the outlook. The surplus marks the highest monthly balance since March 2025 and follows a smaller surplus of $60m in January, making it the second consecutive month of positive external accounts. This turnaround points to a notable improvement after periods of pressure on the balance of payments. Officials attribute the gains to a combination of robust remittance inflows, growth in value-added exports and tighter control over imports. Together, these factors have helped ease the strain on external financing requirements. Remittances, in particular, remain a critical support. Continued inflows from overseas workers have bolstered foreign exchange availability, helping to offset trade imbalances and stabilise the broader macroeconomic framework. At the same time, export performance has sh own gradual improvement, especially in higher-value segments. This has contributed to strengthening the current account position, alongside what authorities describe as disciplined, growth-driven import management. The recent surpluses are being viewed as a sign of increasing resilience. A stabilised external account, coupled with improved buffers, is seen as an important step toward restoring investor confidence and supporting economic recovery. However, the broader context remains uncertain. Regional conflict and global volatility continue to pose risks, particularly for energy markets and trade flows, which could influence future external balances. For now, the consecutive surpluses suggest that policy measures aimed at managing imports and supporting inflows are beginning to yield results. Whether this trend can be sustained will depend on the durability of these underlying drivers and the evolution of external conditions.