Key Takeaways
- Pakistan’s current account deficit widened by 16% year-on-year to $874 million in the first quarter of FY2026-27.
- The deficit reached $356 million in September 2026, compared to a surplus of $133 million in September 2025.
- Imports increased 13% month-on-month to $6.2 billion, while exports rose 23% to $3 billion.
Pakistan’s current account deficit has grown significantly, according to the latest data from the State Bank of Pakistan (SBP). The deficit widened by 16% year-on-year (YoY) to $874 million in the first quarter of fiscal year 2026-27, compared to $755 million in the same period last year.
The September 2026 figures showed a deterioration in the current account, with a deficit of $356 million, contrasting with a surplus of $133 million in September 2025.
The primary driver of this increase was a $148 million month-on-month (MoM) rise in the goods trade deficit, which reached $3.2 billion. This was due to imports increasing 13% MoM to $6.2 billion, while exports grew 23% to $3 billion.
During the first quarter of fiscal year 2026-27, imports surged 14% to $17.8 billion, from $15.5 billion in the same period last year. Exports, on the other hand, increased by 8% to $8.4 billion, compared to $7.8 billion a year earlier.
The faster growth in imports than exports was a key factor in the higher deficit. This trend highlights the ongoing challenges in balancing the trade balance, which is crucial for the country’s economic stability.
Economic analysts, such as Topline Securities, have noted that the current account deficit is a concern, as it could impact the country’s foreign exchange reserves and overall economic health.
The widening deficit could also have implications for Pakistan’s ability to attract foreign investment and manage its debt levels. As the economy continues to face these challenges, policymakers will need to implement measures to address the growing trade imbalance.
The State Bank of Pakistan will likely monitor the situation closely and may introduce policies to stabilize the current account deficit, ensuring that the economy remains on a sustainable path.
