Pakistan Posts $594 Million Current Account Deficit in 1QFY26 Despite September Surplus

Pakistan recorded a current account deficit of $594 million in the first quarter of FY26, widening from a deficit of $502 million in the same period last year, according to data released by the State Bank of Pakistan and compiled by Arif Habib Limited. However, the country posted a notable turnaround in September 2025, registering a current account surplus of $110 million. This marks a significant improvement from a deficit of $52 million in September 2024 and a deficit of $325 million in August 2025. The improvement in September was driven by a 1% year-on-year increase in exports of goods to $2.63 billion and a 20% jump in exports of services to $797 million. Imports of goods also rose 7% year-on-year to $5.02 billion, while imports of services increased 3% to $995 million. Workers’ remittances provided further support, rising 11% year-on-year to $3.18 billion in September. The balance on secondary income also improved by 10% to $3.37 billion. Despite the positive monthly performance, the overall trade deficit for the quarter remained substantial, with the balance on trade in goods at negative $7.53 billion and the balance on trade in services at negative $931 million for 1QFY26. The historical trend chart shows persistent trade deficits over the past year, with the current account balance fluctuating but remaining mostly in negative territory.