Pakistan’s current account posts $112mn deficit in October 2025

Pakistan’s current account posted a deficit of $112 million in October 2025, data released by the State Bank of Pakistan (SBP) showed on Monday.

The deficit follows a surplus of $83 million recorded in September 2025 and a surplus of $296 million in October 2024.

The deficit came the back of a significantly higher import bill and lower exports during the month.

In October 2025, the country’s total export of goods and services amounted to $3.57 billion, down nearly 4% as compared to $3.71 billion in the same month of the previous year.

Meanwhile, total imports clocked in at $6.32 billion during October 2025, an increase of over 13% on a yearly basis, as compared to $5.58 billion in the same month last year, according to SBP data.

During October 2025, Pakistan’s workers’ remittance inflows clocked in at $3.42 billion, as compared to $3.05 billion in the same month last year, reflecting an increase of 12% on a yearly basis.

“Pakistan’s external account showed mixed signals in October, with the country posting a $112mn current account deficit after a brief surplus in September. The deterioration was driven primarily by a 4% MoM widening in the trade deficit, as imports rose faster than exports amid recovering domestic demand,” Waqas Ghani, Head of Research at JS Global, told Business Recorder.

The analyst noted that remittances have played a pivotal role in stabilising Pakistan’s external account, consistently offsetting the trade deficit. “Their role has become even more important as external pressures resurface,” he said.

During the 4MFY26, the current account recorded a cumulative deficit of $733 million, up from $206 million in the same period last year, an increase of 256%.

Pakistan’s foreign exchange reserves (excluding CRR/SCRR) rose to $14.50 billion, reflecting a substantial 29% rise year-on-year, indicating stronger external buffers despite ongoing structural pressures on the current account.