Pakistan Records $356 Million Current Account Deficit In September 2026
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✧ GENERATE BRIEFING
Pakistan’s external balance came under intensified pressure in September 2026, with the State Bank of Pakistan (SBP) reporting a current account deficit of $356 million. This represents a nearly fivefold MoM expansion from August’s revised $73 million deficit and a sharp reversal from the $133 million surplus recorded in September 2025. Key macroeconomic dynamics, trade metrics, and exchange rate implications include: Trade Balance Disparity: Total exports of goods and services grew 15.5% YoY to $3.95 billion. However, import payments surged 22.7% YoY to $7.38 billion, widening the goods trade deficit to $3.16 billion and outpacing inflows. Secondary Income Buffers: Remittance inflows provided critical support at $3.59 billion (+12.7% YoY), though down 1.9% MoM from August ($3.66 billion). Total secondary income reached $3.87 billion. First-Quarter FY2026–27 Accumulation: Cumulative current account deficit for 1QFY27 widened by 15.8% YoY to $874 million (vs. $755 million in 1QFY26). Brokerage firm Topline Securities projects the full-year FY27 current account deficit at $2.0 billion to $3.0 billion (0.4%–0.6% of GDP).
Pakistan recorded a current account deficit of $356 million in September 2026, reversing from a $73 million shortfall in August and a $133 million surplus in September last year, according to data released by the State Bank of Pakistan (SBP).
The latest figures indicate widening pressure on the country’s external account, as imports increased faster than exports. The August deficit was also revised downward from the previously reported $98 million to $73 million.
Widening Trade Gap and Remittance Cushions
Pakistan’s total exports of goods and services reached $3.95 billion in September, rising more than 15% from $3.42 billion a year earlier. However, imports climbed by over 23% to $7.38 billion, compared with $5.99 billion in September 2025.
Workers’ remittances continued to provide support to the external account. Inflows reached $3.59 billion during September, up nearly 13% from $3.18 billion in the corresponding month last year. Despite the increase in remittances, the higher import bill contributed to the monthly deficit.
First-Quarter FY2026–27 Deficit Accumulation
During the first quarter of fiscal year 2026–27, Pakistan’s cumulative current account deficit reached $874 million, compared with $755 million in the same period of the previous fiscal year, representing an increase of around 16%.
Topline Securities expects Pakistan’s current account deficit to range between $2 billion and $3 billion in FY2026–27, equivalent to approximately 0.4%–0.6% of gross domestic product. The projection reflects expectations for continued pressure on the external balance during the fiscal year.
Real Effective Exchange Rate and Trade Competitiveness
Meanwhile, Pakistan’s Real Effective Exchange Rate (REER) index rose by 0.98% to 108.93 in September, from 107.87 in August. A higher REER can indicate that domestic goods have become relatively more expensive against those of trading partners, potentially affecting export competitiveness, although productivity and global demand also influence trade performance.
The September outcome puts renewed focus on Pakistan’s import growth, export performance and foreign-exchange inflows as policymakers seek to maintain external-sector stability.
