Karachi, November 17, 2025 – Pakistan’s current account deficit (CAD) has widened sharply by 255% during the first four months of fiscal year 2025-26, compared to the same period last year, according to the latest Balance of Payments data released by the State Bank of Pakistan (SBP) on Monday.
The current account deficit stood at $733 million from July to October of FY26, up from $206 million during the corresponding period of FY25. Analysts attribute the surge primarily to a sharp increase in imports combined with declining exports.
Trade Deficit Widens Amid Rising Imports
Trade data from the Pakistan Bureau of Statistics (PBS) shows that imports rose by 15.13%, reaching $23 billion in the first four months of FY26, up from $20 billion during the same period last year. Meanwhile, exports fell by 4% to $10.45 billion, down from $11 billion in the corresponding months of FY25.
This imbalance resulted in a trade deficit of $12.58 billion, marking a 38% increase compared to $9.12 billion in the first four months of the previous fiscal year.
Remittances Provide Some Relief
The balance of payments was partially supported by workers’ remittances, which rose to $13 billion during July–October FY26, compared to $11.85 billion in the same period last year.
October 2025 Snapshot
In October 2025, Pakistan recorded a current account deficit of $112 million, compared with a surplus of $296 million in October 2024.
Context: Previous Fiscal Years
Pakistan had recorded a current account surplus of $1.93 billion in FY25, following a deficit of $2 billion in FY24, highlighting the volatility in the country’s external accounts.