Pakistan recorded a current account deficit of $139 million in fiscal year 2025-26 (FY26), reversing the $1.838 billion surplus posted in the previous fiscal year, according to data released by the State Bank of Pakistan (SBP) on Friday.
The annual deficit amounted to 0.03% of GDP, compared with a surplus equal to 0.45% of GDP in FY2024-25.
In June 2026, the country recorded a current account deficit of $649 million, the largest monthly shortfall of the fiscal year. The figure marked a sharp reversal from the $500 million surplus reported in May and the $220 million surplus recorded in June 2025.
The current account remained under pressure during the first half of FY26, posting deficits of $737 million in the July–September quarter and $624 million during October–December. It returned to surplus in January–March with a positive balance of $1.647 billion, before slipping back into a $425 million deficit in the final quarter.
The deterioration in the annual current account balance was largely driven by a wider goods trade deficit, which increased 25.4% to $33.623 billion, up from $26.803 billion a year earlier.
During FY26, goods exports declined 4.64% to $30.843 billion, while goods imports rose 8.99% to $64.466 billion, widening the trade gap.
The services sector showed stronger performance, with exports rising 18.75% to $10.034 billion and imports increasing 5.66% to $11.925 billion. As a result, the services trade deficit narrowed by nearly 33% to $1.891 billion, compared with $2.836 billion in the previous fiscal year.
Meanwhile, workers’ remittances continued to support the external account, increasing 8.58% to $41.585 billion from $38.300 billion in FY25.
The overall secondary income surplus rose to $43.813 billion, while the primary income deficit narrowed to $8.438 billion, providing partial relief against the widening trade imbalance.
In June 2026, Pakistan exported goods worth $2.595 billion while imports reached $6.147 billion, resulting in a monthly goods trade deficit of $3.552 billion.
The services account posted a $25 million surplus during the month, with exports of $956 million exceeding imports of $931 million. However, a primary income deficit of $819 million offset these gains despite a secondary income surplus of $3.697 billion, leading to the overall $649 million current account deficit for June.
