Pakistan’s current account deficit narrowed to $98 million in August 2026, compared with a $445 million shortfall in July, according to data released by the State Bank of Pakistan (SBP) on Wednesday.
The latest deficit was also lower than the $324 million gap recorded in August 2025, as stronger remittance inflows helped offset the impact of a widening import bill.
Exports of goods and services increased by more than 5% year-on-year to $3.33 billion in August, up from $3.17 billion a year earlier.
However, imports rose by over 8% to $6.64 billion during the month, compared with $6.15 billion in August 2025, according to SBP data.
Workers’ remittances provided support to the external account, rising nearly 17% year-on-year to $3.66 billion in August from $3.14 billion a year earlier.
During the first two months of FY27, Pakistan recorded a cumulative current account deficit of $543 million, down 36% from the $853 million deficit reported in the corresponding period of the previous fiscal year.
Meanwhile, Pakistan’s foreign exchange reserves, excluding CRR/SCRR, increased to $17.28 billion. The reserve position was around 19% higher than a year earlier, providing additional external-sector support despite continued pressure from the current account.
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