Higher imports outweigh remittance growth and services exports, SBP data shows
ISLAMABAD: Pakistan recorded a current account deficit of $139 million during the fiscal year 2025-26, marking a reversal from the $1.838 billion surplus posted in the previous fiscal year, according to data released by the State Bank of Pakistan (SBP) on Friday.
The latest figures indicate that the country’s external account came under pressure as imports increased at a faster pace than exports, despite continued growth in workers’ remittances and services exports.
During June 2026 alone, Pakistan posted a current account deficit of $649 million, compared with a surplus of $500 million in May 2026 and a surplus of $220 million recorded in June 2025.
Imports rise while exports show mixed performance
According to the SBP, merchandise exports declined by 5 percent to $30.8 billion in FY26 from $32.3 billion a year earlier. However, services exports increased by 19 percent, reaching $10 billion compared with $8.4 billion in FY25.
Meanwhile, imports continued to expand during the fiscal year. Goods imports rose 9 percent to $64 billion from $59 billion in the previous year, while services imports increased 6 percent to $11.9 billion from $11.2 billion.
The higher import bill offset gains from the services sector and contributed to the return of a current account deficit.
Remittances remain a key source of support
Workers’ remittances continued to provide significant support to Pakistan’s external sector during FY26. Inflows increased by 9 percent to $41.5 billion, reflecting resilient overseas transfers despite global economic challenges.
However, remittances for June 2026 stood at $3.475 billion, representing an 18 percent decline from the $4.25 billion received in May 2026.
The SBP data suggests that while strong remittance inflows and expanding services exports helped cushion external pressures, rising imports and weaker merchandise exports weighed on the country’s overall current account position during the fiscal year.
