Pakistan's economic worries were not over as it registered a current account deficit (CAD) of USD 139 million in outgoing fiscal year (2025-26) after recording a surplus of USD 1.838 billion in 2024-25.
The data released by State Bank of Pakistan on Friday showed the reversal in the CAD - though marginal but still a source of anxiety, which may be further compounded due to the situation in West Asia.
The data by the SBP showed that the country posted a current account deficit of USD 649 million in June compared to a surplus of USD 500 million in May.
The economy was largely supported by remittances, as exports could not grow while imports remained high, creating a trade deficit of over USD 35.5 billion in FY26 and bringing the current account under pressure.
Goods exports dropped to USD 30.843 billion in FY26 from USD 32.434 billion a year ago. However, services exports increased to USD 10.034 billion from USD 8.45 billion, helping overall exports show marginal growth.
The net exports of goods and services stood at USD 40.877 billion in FY26 compared to USD 40.793 billion a year ago, an increase of only USD 84 million.
FY26 witnessed a large import bill of USD 76.4 billion and the situation was saved only due to remittances, which rose to USD 41.585 billion in FY26 from USD 38.3 billion in FY25, an increase of about USD 3.3 billion.
However, the Middle East situation was becoming more complicated, which could give major shocks to the current account of the country.
