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Pakistan’s current account deficit widened to $594 million in the first quarter of FY26, compared to $502 million in the same period last year, according to the State Bank of Pakistan (SBP). Despite the quarterly shortfall, a surprising current account surplus of $110 million was recorded in September 2025, offering a brief positive sign for the struggling economy.
Pakistan has been grappling with external financing pressures and a persistent trade gap over the past few years. The latest data indicates that while monthly improvements continue, the overall current account position remains vulnerable to global price trends and import pressures.
The improvement in September stemmed from stronger exports and higher remittances. Exports of goods rose 1% year-on-year to $2.63 billion, while exports of services jumped 20% to $797 million. However, imports also increased goods by 7% to $5.02 billion and services by 3% to $995 million.
| Indicator (Sept 2025) | Value (USD Billion) | YoY Change |
| Exports (Goods) | 2.63 | +1% |
| Exports (Services) | 0.80 | +20% |
| Imports (Goods) | 5.02 | +7% |
| Imports (Services) | 0.99 | +3% |
| Remittances | 3.18 | +11% |
| Secondary Income | 3.37 | +10% |
“The surplus in September reflects a short-term recovery supported by remittances and service exports, but structural challenges persist,” noted analysts at Arif Habib Limited.
Broader Outlook
Despite the monthly surplus, the overall trade deficit for 1QFY26 stood at $7.53 billion for goods and $931 million for services. Economists caution that without sustainable export growth and import rationalisation, the pressure on Pakistan’s external account will likely continue.
“Pakistan needs consistent policy measures to stabilise its current account one good month doesn’t reverse the underlying trend,” an SBP economist commented.
While September’s surplus offers cautious optimism, the first-quarter deficit highlights the ongoing challenge of maintaining balance in external accounts. Strengthening exports, controlling imports, and sustaining remittance inflows remain crucial for long-term stability.
