KARACHI: Pakistan’s current account swung back into deficit in April as a sharp rise in imports, driven largely by higher global oil prices, outweighed earlier gains.
The State Bank of Pakistan (SBP) reported on Monday that the current account posted a deficit of USD324 million in April 2026, compared with a surplus of USD1.134 billion in March 2026, which was the highest in a year.
Current account posted deficit in April after two consecutive surpluses in March and February 2026. Over the first 10 months of this fiscal year (FY26), the current account recorded a deficit in five months, while posting a surplus in five months.
READ MORE: Pakistan records $3.5bn in remittances for April 2026
The March surplus was supported by strong inflows of home remittances, while the April deficit is attributed to a sharp rise in the oil import bill amid higher global crude prices following the escalation in tensions after the US-Iran conflict.
According to SBP, Pakistan’s goods import bill surged by 22 percent in April 2026, reflecting a sharp month-on-month increase. The country imported goods worth USD 5.97 billion in April 2026, compared to USD 4.9 billion in March 2026, marking an increase of nearly USD 1 billion.
Consecutive surpluses in February and March helped generate a modest cumulative current account surplus during July-March FY26. However, this gain was not sustained, as the overall current account position also slipped into deficit over the first ten months of the fiscal year due to April deficit.
Cumulative basis, current account recorded a deficit of USD 252 million during July-April of FY26 compared to a surplus of USD1.66 billion in same period of last fiscal year (FY25).
Despite challenging external environment including significant worsening of terms-of-trade, the SBP believed that the current account by end of FY26 is now likely to remain closer to the lower bound of the earlier projected range 0-1 percent of GDP.
On the financing side, the government has proactively raised external financing amounted to USD 3.75 billion via enhanced bilateral arrangements and issuance of Eurobonds, which cushioned the impact of the recent debt and liability repayments on SBP’s FX reserves.
Copyright Business Recorder, 2026
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