Pakistan posts $649 million current account deficit in June, closes FY26 with $139 million shortfall

Pakistan recorded a current account deficit of $139 million in FY2025-26, reversing a surplus of $1.838 billion in the preceding fiscal year, according to the latest data shared by the State Bank of Pakistan (SBP) on Friday.

The annual deficit was equivalent to 0.03% of GDP, compared with a surplus equal to 0.45% of GDP in FY2024-25.

In June 2026, the current account posted a deficit of $649 million, the largest monthly shortfall of the fiscal year, after recording a surplus of $500 million in May. Pakistan had posted a surplus of $220 million in June 2025.

The current account remained under pressure during the first half of FY2025-26, recording deficits of $737 million in July-September and $624 million in October-December.

It then moved into a surplus of $1.647 billion during January-March before returning to a deficit of $425 million in the final quarter.

The annual reversal was mainly driven by a wider goods trade deficit, which increased 25.4% to $33.623 billion from $26.803 billion a year earlier.

Goods exports declined 4.64% to $30.843 billion, while imports rose 8.99% to $64.466 billion.

The services account performed comparatively better. Services exports increased 18.75% to $10.034 billion, while imports rose 5.66% to $11.925 billion.

As a result, the services trade deficit narrowed by about 33% to $1.891 billion from $2.836 billion.

Workers’ remittances helped contain the current account shortfall, rising 8.58% to $41.585 billion from $38.300 billion in FY2024-25.

The overall secondary income surplus increased to $43.813 billion from $40.315 billion, while the primary income deficit narrowed to $8.438 billion from $8.838 billion.

In June alone, goods exports stood at $2.595 billion against imports of $6.147 billion, producing a trade deficit of $3.552 billion.

Services recorded a $25 million surplus during the month, with exports of $956 million exceeding imports of $931 million. However, a primary income deficit of $819 million contributed to the overall current account shortfall despite a $3.697 billion secondary income surplus.