Key Takeaways
- Pakistan's current account balance recorded a deficit of $139 million for fiscal year 2025-26.
- Exports of goods declined by 5 percent, while services saw a 19 percent increase.
- Imports surged by 9 percent, contributing to the overall deficit.
Pakistan's current account balance slipped into a deficit of $139 million in fiscal year 2025-26 (FY26), marking a significant shift from the previous year’s surplus. According to data released by the State Bank of Pakistan (SBP), this represents a stark contrast to the $1.838 billion surplus recorded in FY25.
The decline in exports was notable, with goods exports dropping by 5 percent to $30.8 billion from $32.3 billion in FY25. In contrast, services exports saw a robust growth of 19 percent, reaching $10 billion compared to $8.4 billion the previous year.
Imports also witnessed an increase, with goods imports jumping by 9 percent to $64 billion from $59 billion in FY25. Services imports recorded a 6 percent rise, totaling $11.9 billion against $11.2 billion in the preceding fiscal period.
While workers' remittances showed growth, increasing by 9 percent to $41.5 billion for the year and $3.475 billion in June 2026, they also experienced a month-on-month decline of 18 percent compared to May 2026’s figure of $4.25 billion.
The SBP data further highlighted that during June 2026 alone, the current account deficit widened significantly to $649 million from a surplus of $220 million in June 2025 and $500 million in May 2026.
Economists have attributed this shift to various factors including reduced exports due to global economic challenges and increased imports driven by higher domestic demand. The SBP has been closely monitoring these trends as part of its broader economic management strategy.
