ISLAMABAD: Pakistan’s current account posted a deficit of $112 million in October 2025, according to data released by the State Bank of Pakistan on Monday. The deficit followed a surplus of $83 million in September 2025. It also contrasted with a surplus of $296 million recorded in October 2024. The shift occurred due to a higher import bill and weaker export performance during the month.
Exports Decline While Imports Rise Sharply
Pakistan’s total exports of goods and services stood at $3.57 billion in October 2025. The figure marked a decline of nearly 4 percent from $3.71 billion reported in October 2024. Meanwhile, total imports reached $6.32 billion in October 2025. The number showed an increase of more than 13 percent on a yearly basis. Imports in the same month last year totalled $5.58 billion. The widening gap between exports and imports pushed the current account back into deficit.
Remittances Offer Strong Support
Workers’ remittances continued to show resilience during the month. Inflows reached $3.42 billion in October 2025. The number reflected a 12 percent yearly increase compared to $3.05 billion in October 2024. Analysts noted that remittances helped cushion rising external pressures and provided essential support to the country’s external position.
Analysts Highlight Mixed Economic Signals
Waqas Ghani, Head of Research at JS Global, said Pakistan’s external account showed mixed signals in October. He stated that the deficit emerged after a short-lived surplus in September. He added that a 4 percent month-on-month widening in the trade deficit drove the deterioration. Imports rose faster than exports due to recovering domestic demand. Ghani said remittances continued to offset the trade deficit and remained vital as external pressures re-emerged.
Cumulative Deficit Rises Sharply in 4MFY26
Pakistan recorded a cumulative current account deficit of $733 million during the first four months of FY26. The figure marked a sharp rise from $206 million in the same period last year. The increase amounted to 256 percent on a yearly basis. Despite structural challenges, Pakistan’s foreign exchange reserves showed improvement. Reserves excluding CRR and SCRR rose to $14.50 billion. The figure reflected a strong 29 percent yearly increase. The rise indicated improved external buffers despite continued pressure on the current account.
