Pakistan posts $356mn current account deficit in Sept 2026
- Deficit of $73mn was recorded in Aug 2026
Pakistan's current account deficit widened to $356 million in September 2026, primarily due to a significant increase in imports despite rising exports and remittances.
- Pakistan's September 2026 current account deficit figures.
- Rising imports and exports' impact on the trade balance.
- Pakistan's Real Effective Exchange Rate (REER) index and its implications.
Pakistan’s current account posted a deficit of $356 million in September 2026, data released by the State Bank of Pakistan (SBP) showed on Friday.
The latest figure follows a deficit of $73 million recorded in August 2026 and a surplus of $133 million in September 2025. The August 2026 deficit was revised down from $98 million to $73 million.
The deficit came from a significantly higher import bill and a marginal increase in exports during the month.
In September 2026, the country’s total exports of goods and services amounted to $3.95 billion, up over 15% as compared to $3.42 billion in the same month of the previous year.
Meanwhile, total imports clocked in at $7.38 billion during September 2026, an increase of over 23% on a yearly basis, as compared to $5.99 billion in the same month last year, according to SBP data.
During September 2026, Pakistan’s workers’ remittance inflows clocked in at $3.59 billion, as compared to $3.18 billion in the same month last year, reflecting an increase of nearly 13% on a yearly basis.
During 3MFY27, the current account recorded a cumulative deficit of $874 million, as compared to a deficit of $755 million recorded in the same period last fiscal year, reflecting an increase of 16%.
“We expect the current account deficit for FY27E to clock in at US$2-3bn, which is 0.4%-0.6% of GDP,” said Topline Securities.
Pakistan’s REER Index
Pakistan’s Real Effective Exchange Rate (REER) has increased marginally by 0.98% to 108.93 in September 2026 compared to 107.87 in August 2026.
A REER above 100 means the country’s exports are uncompetitive, while imports are cheaper. The situation reverses when REER stands below 100 on the index.
What is REER?
As per the central bank, REER is an index of the price of a basket of goods in one country relative to the price of the same basket in that country’s major trading partners.
“The prices of these baskets are expressed in the same currency using the nominal exchange rate with each trading partner. The price of each trading partner’s basket is weighted by its share in imports, exports, or total foreign trade,” the SBP website says.
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