Pakistan’s Current Account Deficit explodes over 3.5x in 4MFY26

November 17, 2025 (MLN): Pakistan’s current account deficit widened to $733 million in the first four months of FY26, over 3.5 times higher than the $206 million deficit recorded in the same period last year, according to the latest data from the State Bank of Pakistan (SBP).

The widening deficit reflects a surge in imports, which rose 10% to $24.92 billion in 4MFY26 from $22.65 billion in 4MFY25, while exports increased 4.8% to $13.66 billion compared to $13.04 billion a year ago.

Consequently, the trade deficit in goods and services expanded to $11.26 billion, 1.17 times higher than $9.61 billion in the first four months of FY25.

For October 2025 alone, Pakistan posted a current account deficit of $112 million, reversing the $83 million surplus recorded in September 2025 and falling sharply from a $296 million surplus in October 2024.

Exports during the month declined 3.6% year-on-year to $3.57 billion, but rose 4.5% month-on-month from $3.42 billion in September.

Imports rose 13.4% compared to October 2024 to $6.32 billion and increased 4.6% from the previous month, widening the monthly trade deficit by 4.7% to $2.75 billion.

Workers’ remittances continued to support the external account, rising 11.9% year-on-year to $3.42 billion in October and 7.4% month-on-month compared to $3.18 billion in September.

In the first four months of FY26, remittances increased 9.3% to $12.96 billion from $11.85 billion in the same period last year.

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