KARACHI – Pakistan’s external sector is facing pressure as current account deficit jumped to $356 million in September 2026, reversing the surplus recorded a year earlier and raising fresh concerns about the country’s trade imbalance.
Fresh data by State Bank of Pakistan (SBP) shows September deficit was higher than the revised shortfall of $73 million in August. The latest reading also marks a sharp reversal from September 2025, when Pakistan posted a current account surplus of $133 million.
The deterioration comes despite stronger exports and continued growth in overseas Pakistanis’ remittances, highlighting a persistent problem: the country’s import bill is expanding much faster than its export earnings.
The latest figures reveal growing imbalance in Pakistan’s external trade. Exports of goods and services rose to approximately $3.95 billion in September, up from $3.42 billion a year earlier. However, imports climbed to $7.38 billion from $5.99 billion over the same period.
| indicators | Sept 2026 | Sept 2025 | Annual change |
| Current account balance | -$356 million | +$133 million | Surplus turns deficit |
| Exports of goods and services | $3.95 billion | $3.42 billion | +15% |
| Imports of goods and services | $7.38 billion | $5.99 billion | +23% |
| Workers’ remittances | $3.59 billion | $3.18 billion | +13% |
The numbers tell a troubling story for Pakistan’s external account. While export receipts improved, the faster rise in imports increased the pressure on foreign exchange outflows. This imbalance has become a key factor behind the country’s deteriorating current account position.
The pressure is becoming more evident in the broader fiscal-year picture. Pakistan’s current account deficit reached $874 million during the July–September quarter of FY27, compared with $755 million in the same period last year, marking an increase of approximately 15.8%. The deficit accumulated in just three months has already exceeded twice the approximately $391 million shortfall recorded during the entire FY26.
The merchandise trade figures help explain the deterioration. Goods exports increased by 7.7% to $8.45 billion in the first quarter, while goods imports rose by 14.3% to $17.78 billion. Consequently, the goods trade deficit widened by around 21%, reaching $9.33 billion compared with $7.71 billion a year earlier.
The widening gap suggests that export growth has yet to match the pace of Pakistan’s rising import demand. Remittances from overseas Pakistanis remain one of the country’s most important sources of foreign exchange, but their contribution has not been sufficient to offset the growing trade imbalance.
Pakistan received $3.59 billion in workers’ remittances in September, compared with $3.18 billion in the same month last year. This shows annual growth of nearly 13%, although inflows were slightly lower than the $3.66 billion received in August.
Despite this encouraging performance, the current account remained under pressure as payments for imports and other external transactions continued to outweigh foreign exchange receipts.
