Karachi, February 17, 2026 – Pakistan has recorded a current account deficit of $1.07 billion during the first seven months (July to January) of fiscal year 2025-26, marking a sharp shift from a $564 million surplus in the same period last year, according to the latest Balance of Payment (BOP) data released by the State Bank of Pakistan (SBP) on Tuesday.
The widening deficit is primarily driven by an expanding trade gap. Data from the Pakistan Bureau of Statistics (PBS) indicates that the trade deficit surged by 28.22% to $22.04 billion, up from $17.19 billion in the corresponding period of FY25. This was due to a 7% decline in exports, which fell to $18.20 billion from $19.58 billion, while imports climbed 9.42% to $40.23 billion, compared to $36.77 billion previously.
On a positive note, workers’ remittances showed resilience, rising to $23.2 billion from $20.85 billion, providing some relief to the country’s external accounts.
Notably, in January 2026, Pakistan recorded a current account surplus of $121 million, a significant improvement over a $393 million deficit in January 2025, signaling a possible stabilization in the external sector.
Economists suggest that while remittance inflows and export incentives may help narrow the deficit, addressing the persistent trade imbalance remains crucial for Pakistan’s macroeconomic stability in FY26.
