Stronger exports and rising workers’ remittances helped offset higher imports during the first two months of FY2026-27.
KARACHI, September 16, 2026: Pakistan’s current account deficit narrowed by 36% year-on-year to $543 million during the first two months of fiscal year 2026-27, compared with $853 million in the corresponding period of the previous fiscal year, according to the latest data from the State Bank of Pakistan (SBP).
The improvement came despite a rise in imports, as stronger exports and a substantial increase in workers’ remittances helped contain the country’s external-sector deficit.
August current account deficit falls sharply
Pakistan’s current account deficit declined to $98 million in August 2026, compared with $324 million in August 2025.
The August deficit also represented a significant improvement from the $445 million deficit recorded in July 2026.
Research cited in the provided data from Arif Habib Limited attributed the narrower August deficit to stronger export receipts and remittance inflows, which helped offset the impact of higher imports.
Exports increase during first two months
Pakistan’s exports reached $3.3 billion in August 2026, up 5.3% from $3.2 billion in the same month of the previous year.
However, exports declined by 15% month-on-month from $3.9 billion in July 2026.
Cumulatively, exports during the first two months of FY2026-27 reached $7.3 billion, representing a 9% increase from $6.6 billion during the corresponding period of FY2025-26.
Imports remain elevated
Pakistan’s total imports stood at $6.6 billion in August, increasing 8.1% year-on-year from $6.2 billion.
On a monthly basis, imports fell by around 10% from $7.4 billion in July 2026.
During the first two months of FY2026-27, total imports reached $14 billion, compared with $12.6 billion during the same period of the previous fiscal year, marking an increase of about 11%.
Remittances provide external-sector support
Workers’ remittances continued to provide significant support to Pakistan’s external account.
Remittances amounted to approximately $3.7 billion in August 2026, rising 17% from $3.1 billion in August 2025.
On a month-on-month basis, remittance inflows increased by around 1% from $3.6 billion in July.
Cumulatively, workers’ remittances rose 15% year-on-year to $7.3 billion during the first two months of FY2026-27, compared with $6.4 billion in the corresponding period of FY2025-26.
The SBP’s latest release for August includes monthly balance-of-payments and related external-sector indicators.
Primary income deficit remains significant
Pakistan’s primary income balance recorded a deficit of $672 million in August, compared with a $693 million deficit in August 2025 and $849 million in July 2026.
Meanwhile, the secondary income balance reached $3.9 billion in August, increasing 16% year-on-year and around 1% from the previous month.
Financial account records deficit
The financial account recorded a $346 million deficit in August 2026, compared with a deficit of $329 million in August 2025.
The account had posted a surplus of $832 million in July 2026.
Foreign direct investment rises
Foreign direct investment (FDI) amounted to $316 million in August 2026, compared with $175 million during the same month of the previous year.
The figures represent an 81% year-on-year increase in FDI during the month.
Pakistan’s external position improves in early FY27
The latest balance-of-payments figures show that Pakistan recorded a smaller cumulative current account deficit in the first two months of FY2026-27 than during the same period a year earlier.
The improvement was supported particularly by stronger workers’ remittances and export receipts, although imports remained substantially higher than their level in the corresponding period of FY2025-26.