Pakistan’s current account posts $245mn deficit in August

Pakistan’s current account posted a deficit of $245 million in August 2025, data released by the State Bank of Pakistan (SBP) showed on Thursday.

The deficit follows a deficit of $379 million (revised) recorded in July 2025 and compares with a deficit of $82 million in August 2024.

In 2MFY26, Pakistan’s current account stood at a deficit of $624 million, higher than the deficit of $430 million registered in the same period last year.

Pakistan closed FY25 with a $2.1 billion current account surplus, its first in 14 years, largely supported by a 27% jump in workers’ remittances to $38.3 billion.

The August 2025 deficit, however, indicates that sustaining a positive trend will depend on continued strength in remittances, stable exports, and controlled import demand.

According to SBP data, Pakistan’s exports of goods (FOB) were valued at $2.51 billion in August 2025, while imports stood at $4.98 billion, leaving a trade deficit of $2.48 billion. Exports of services were recorded at $671 million, compared to imports of $1,108 million, resulting in a services trade deficit of $437 million.

Workers’ remittances came in at $3.14 billion in August 2025, lower than July’s $3.21 billion, but still forming the backbone of the country’s external account.

Economists said the August shortfall highlights the challenge of sustaining the recent improvement in the current account, with stability hinging on resilient remittance inflows, steady export growth, and controlled import demand.