Pakistan’s current account deficit widened sharply to $733 million in the first four months of fiscal year 2025-26 (4MFY26), according to figures released by the State Bank of Pakistan (SBP) and compiled by Arif Habib Limited.
Sharp Rise Compared to Last Year
The shortfall marks a steep increase from the $206 million deficit recorded during the same period a year earlier. In October 2025 alone, Pakistan posted a deficit of $112 million, reversing the trend from a surplus of $296 million in October 2024 and $83 million in September 2025.
Trade Balance Pressures Current Account Deficit
Data shows that exports of goods in October 2025 stood at $2.75 billion, reflecting a 9% decline year-on-year. Imports of goods, however, rose 13% to $5.27 billion, pushing the trade deficit in goods to $2.53 billion for the month.
Services Sector Shows Mixed Trends
Exports of services grew by 18% to $826 million, while imports of services climbed 13% to $1.05 billion.
Remittances Provide Support
Workers’ remittances offered some relief, reaching $3.42 billion in October 2025, up 12% compared to the same month last year. The balance on secondary income also improved by 14%, rising to $3.55 billion.
Overall Balance Still Under Strain
Despite stronger inflows from remittances and secondary income, the overall current account deficit has continued to deteriorate, driven mainly by the widening trade gap and higher import volumes.
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