Pakistan recorded a current-account deficit of $543 million in the first two months of fiscal year 2026-27, according to the State Bank of Pakistan’s latest Balance of Payments data.
The deficit was recorded despite a strong increase in workers’ remittances, as the country’s merchandise trade gap continued to widen.
Trade Gap Remains the Main Pressure
The goods trade deficit reached $6.19 billion in July-August FY27, compared with $5.211 billion in the corresponding period of the previous fiscal year.
Goods imports rose to $11.635 billion, up from $10.449 billion a year earlier, while exports increased to $5.445 billion from $5.238 billion.
The figures show that import growth continued to outpace export growth during the opening months of the fiscal year.
Remittances Provide External Support
Workers’ remittances increased to $7.286 billion in July-August FY27, compared with $6.352 billion in the same period last year.
The rise in remittance inflows helped offset part of the external-sector pressure, but was insufficient to prevent the current account from remaining in deficit.
The secondary-income balance, which includes remittances and other transfers, stood at $7.73 billion during the period.
Services And Income Outflows Add Pressure
Pakistan’s services trade deficit stood at $562 million in the first two months, narrowing from $753 million a year earlier.
However, the primary-income deficit remained substantial at $1.521 billion, reflecting the difference between income received from abroad and income paid to non-residents.
The combined deficit in goods, services and primary income reached $8.273 billion during July-August.
FDI Inflows Improve
Foreign direct investment in Pakistan rose to $495 million in the first two months of FY27, compared with $399 million in the corresponding period.
Portfolio investment in Pakistan also recorded a net inflow of $67 million, compared with a net outflow of $84 million a year earlier.
The data indicate improved investment inflows, although the wider external account remained under pressure from the trade imbalance.