Pakistan's current account deficit widens to $356m in September as imports jump 23%; first-quarter gap hits $874m

Key takeaways

• Pakistan's current account was in deficit by $356 million in September 2026, the State Bank of Pakistan (SBP) said on Friday.
• That compares with a $73 million deficit in August (revised from $98m) and a $133 million surplus in September 2025.
• Imports of goods and services rose about 23% to $7.38 billion, while exports grew about 15% to $3.95 billion.
• The deficit for July–September (Q1 FY27) reached $874 million, already above the $391 million gap recorded for the whole of FY26, according to Dawn.
• Remittances stayed strong at $3.59 billion in September, and foreign direct investment rose 20% in the quarter.

What the data show

The current account tracks a country's trade in goods and services plus income and transfers such as workers' remittances. A deficit means more foreign exchange is going out than coming in, which increases the need for borrowing or investment from abroad.

Source: SBP data as reported by Business Recorder.

First quarter of FY27

Source: SBP data as reported by Dawn.

Dawn notes that higher international oil and gas prices and a larger food import bill, including wheat and edible oil, are behind the jump in imports. Canada was the largest source of FDI in the quarter at $229 million.

What analysts say

Brokerage Topline Securities expects the current account deficit for the full year FY27 to come in at $2–3 billion, or about 0.4–0.6% of GDP, Business Recorder reports. Experts quoted by Dawn say the gap could widen further if conflict in the Gulf keeps oil prices high.

The SBP also said the real effective exchange rate (REER) index rose to 108.9 in September from 107.9 in August. A reading above 100 generally means Pakistan's exports are relatively less price-competitive.

Why it matters

Pakistan recorded several monthly current account surpluses earlier in 2026, helping rebuild reserves under its $7 billion IMF programme. A run of deficits would put more pressure on the rupee and on foreign exchange reserves, which the SBP put at $26.86 billion (total liquid reserves) as of 9 October.

What to watch

• October trade figures from the Pakistan Bureau of Statistics, due early next month.
• Global oil prices and shipping disruption in the Gulf.
• Whether remittance growth can keep pace with the rising import bill.

This article is for general information only and is not financial or investment advice.