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Pakistan’s current account deficit has sharply widened to $733 million in the first four months of FY26, signalling renewed pressure on the economy despite a rise in remittances and secondary income. Fresh SBP data compiled by Arif Habib Limited shows the country’s external position weakening again after months of relative stability.
The deficit is significantly higher than the $206 million recorded in the same period last year, mainly driven by a growing trade imbalance. In October 2025 alone, Pakistan posted a $112 million deficit reversing last year’s surplus of $296 million and September’s surplus of $83 million reflecting the impact of declining exports and rising import demand.
According to the figures, goods exports fell 9% year-on-year to $2.75 billion in October, while imports surged 13% to $5.27 billion, resulting in a trade deficit of $2.53 billion. Services exports rose 18% to $826 million, but services imports also increased 13% to $1.05 billion.
Workers’ remittances offered some relief, climbing 12% to $3.42 billion, while secondary income improved 14% to $3.55 billion both crucial buffers against external pressures.
Still, the rising import bill continues to outweigh gains in remittances, pushing the current account deeper into deficit. Economists warn that if the trend continues, it could challenge Pakistan’s efforts to maintain external stability and meet upcoming financing needs.
