Pakistan recorded a current account deficit (CAD) of $245 million in August 2025, wider than the $82 million gap in August 2024 but narrower than July’s $379 million deficit, SBP data show.
Cumulatively, the deficit for the first two months of FY26 rose to $624 million, compared to $430 million in the same period last year.
The August reading shows the challenge of sustaining the external improvement seen in FY25, when Pakistan posted a $2.1 billion current account surplus, its first in 14 years, aided by a 27% jump in workers’ remittances to $38.3 billion.
Trade dynamics weighed on the August balance. Goods exports (FOB) were $2.51 billion against imports of $4.98 billion, yielding a merchandise trade deficit of $2.48 billion.
In services, exports totaled $671 million versus imports of $1.11 billion, resulting in a $437 million deficit.
Remittances remained the key offset, clocking in at $3.14 billion in August, down from July’s $3.21 billion but still the backbone of the external account.
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
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