Pakistan’s current-account deficit reached approximately $874 million in July–September 2026, the first quarter of fiscal year 2026–27, compared with $755 million in the same period a year earlier, according to State Bank of Pakistan data released on 16 October.
The deficit widened particularly sharply in September, when the current account posted a shortfall of $356 million. September 2025 had recorded a $133 million surplus.
Imports and the trade gap
The merchandise trade deficit increased to about $10.79 billion in the quarter from $9.37 billion a year earlier, according to figures reported by Dawn. Higher energy and food-import costs were among the pressures cited in reporting on the external account.
The current account measures more than trade in goods: it also includes services, income flows and transfers such as workers’ remittances. A wider goods trade gap can therefore coexist with strong remittance receipts.
What the deficit means
A current-account deficit signals that external payments on these transactions exceed corresponding receipts. It can increase financing needs, but the deficit figure alone does not establish an imminent foreign-exchange shortage or currency movement. Capital and financial flows, official lending, debt repayments and reserve management also matter.
The first-quarter deficit was greater than the roughly $391 million shortfall reported for the entirety of FY26, illustrating how external conditions have changed. Readers should distinguish the current-account deficit from the broader balance-of-payments result, which also includes financial-account movements.
This story focuses on the external trade imbalance; the separate remittance article covers worker transfers and their sources.
Sources: Dawn, 17 October 2026; Business Recorder; State Bank of Pakistan economic data.