Karachi:
Pakistan’s weak external position has once again come under pressure, as the current account deficit widened to $733 million in the first four months of fiscal 2026, more than triple the $206 million in the same period last year.
The situation worsened in October and the current account went into a deficit of $112 million, compared to a surplus of $83 million in September.
According to the latest State Bank data, a deficit of $621 million had already been recorded during July-September FY26, as opposed to a surplus of $83 million in the same period last year.
The main reason for the pressure on the external sector was a significant increase in imports and a slowdown in exports, Pakistan’s gross trade deficit (goods and services) widened to $11.26 billion in July-October FY26, from $9.61 billion last year.
Exports of goods saw only a slight improvement and stood at $10.63 billion, up only 2 percent from last year’s $10.42 billion.
Exports in October stood at $2.75 billion, which is less than $3 billion in October last year. Services exports provided some support and reached $3.03 billion, with ITV Telecom exports at $1.44 billion, a significant increase over last year.
On the other hand, imports of goods increased to $20.72 billion, which is 9.6% higher than last year’s $18.90 billion.
Imports of services also increased to $4.20 billion, with the primary income deficit still a major challenge, which stood at $3.09 billion in four months.
In October alone, a loss of 905 million dollars was recorded in this regard. Remittances supported the external account the most, which rose to $12.96 billion, but could offset the widening trade deficit.
The fiscal account also remained under pressure and recorded a deficit of $605 million in four months, while FDI declined to $748 million.
Although foreign exchange reserves rose to $14.64 billion by the end of October, the widening current account deficit and heavy debt repayments in the coming months pose new risks to external stability.
