Rising trade deficit pushes Pakistan into monthly external account shortfall
State Bank of Pakistan (SBP) on Monday reported that Pakistan posted a current account deficit (CAD) of $324 million in April 2026, reversing the strong surplus recorded in the previous month.
According to balance of payments data released by the central bank, Pakistan had posted a current account surplus of $1.13 billion in March 2026, while the country recorded a deficit of $12 million in April 2025.
Pakistan posts $252 million CAD in 10MFY26
During the first 10 months (July-April) of fiscal year 2025-26, Pakistan recorded a cumulative current account deficit of $252 million compared with a surplus of $1.66 billion in the corresponding period of the previous fiscal year.
Analysts attributed the deterioration mainly to a widening trade deficit despite continued growth in workers’ remittances.
Trade deficit widens by 20%
Data released by the Pakistan Bureau of Statistics (PBS) showed the country’s trade deficit widened by around 20% during the first 10 months of the fiscal year.
Pakistan’s trade gap increased to nearly $32 billion during July-April FY26 compared with $26.60 billion in the same period a year earlier.
The increase in imports amid higher domestic demand and external payment pressures contributed to the widening deficit, economists said.
Remittances provide support
Despite the external account pressures, stronger inflows of overseas workers’ remittances helped contain the current account shortfall.
The SBP said workers’ remittances reached $33.9 billion during July-April FY26, marking an increase of 8.5% compared with $31.2 billion received during the corresponding period of the previous fiscal year.
Economists said remittance growth continues to play a crucial role in supporting Pakistan’s external sector stability amid rising import costs and global economic uncertainty.