Pakistan’s Current Account Deficit Widens to $733 Million in 4MFY26

Pakistan’s current account deficit surged to $733 million during the first four months of the fiscal year 2025-26 (4MFY26), according to data released by the State Bank of Pakistan (SBP) and compiled by Arif Habib Limited. This marks a significant increase compared to a deficit of $206 million recorded in the same period last year. In October 2025 alone, the country posted a current account deficit of  $112 million, reversing the trend from a surplus of $296 million in October 2024 and a surplus of $83 million in September 2025. The data shows that exports of goods in October 2025 stood at $2.75 billion, down 9% year-on-year, while imports of goods rose 13% to $5.27 billion. The balance on trade in goods recorded a deficit of $2.53 billion for the month. Exports of services increased by 18% to $826 million, while imports of services rose 13% to $1.05 billion. Workers’ remittances provided some support, reaching $3.42 billion in October 2025, up 12% year-on-year. The balance on secondary income also improved by 14% to $3.55 billion. Despite these positive trends in remittances and secondary income, the overall current account balance has deteriorated, mainly due to a widening trade deficit and higher imports.