Record remittances fail to offset import surge as Pakistan posts $139mn C/A deficit in FY26

Pakistan’s current account recorded a marginal deficit of $139 million in FY26, reversing a surplus of $1.84 billion in the previous fiscal year, according to data released by the State Bank of Pakistan (SBP) on Friday.

Despite record workers’ remittances, Pakistan’s external account was pushed into negative due to high imports, while exports remained stagnant during the outgoing fiscal year.

Earlier, SBP Governor Jameel Ahmad projected the current account would remain balanced or in surplus for the second consecutive fiscal year, i.e. FY26, paving the way for an increase in economic activities and growth in the ongoing fiscal year.

“I am quite confident that June numbers will also be good. So, overall, we are expecting the current account balanced or slightly in surplus for FY26,” the central bank chief said while speaking at the Pakistan Banking Summit 2026.

During FY26, Pakistan’s exports of goods and services clocked in at $40.88 billion, compared with $40.79 billion in FY25, reflecting a rise of just 0.2%.

Meanwhile, imports of goods and services climbed to $76.39 billion during the fiscal year from $70.43 billion a year earlier, an increase of nearly 8.5%.

Workers’ remittances reached a record $41.59 billion in FY26, up 8.6% from $38.3 billion received in the previous fiscal year, providing crucial support to the country’s external position despite a wider trade gap.

On a monthly basis, Pakistan posted a current account deficit of $649 million in June 2026, compared with a surplus of $500 million in May 2026. In June 2025, the country had recorded a current account surplus of $220 million.

“The monthly deficit was primarily attributable to higher imports coupled with lower workers’ remittances in Jun 2026, resulting in the cumulative FY26 current account balance shifting into a modest deficit,” said Topline Securities.

During June 2026, exports of goods and services stood at $3.55 billion, compared with $3.2 billion in May 2026 and $3.3 billion in June 2025.

Imports of goods and services amounted to $7.08 billion in June 2026, compared with $6.42 billion in May 2026, while they were $5.92 billion in the corresponding month of last year.

Workers’ remittances clocked in at $3.48 billion during June 2026, easing from the record $4.25 billion received in May 2026 but remaining broadly in line with the $3.4 billion received in June 2025.

The SBP’s reserves stood at $18.5 billion at the end of FY26, compared with around $14.64 billion a year earlier, providing stronger external buffers amid improving macroeconomic stability.