Pakistan's current account deficit widens 16pc in first quarter on import bill

Pakistan's current account deficit widened by 16 per cent year on year in the first quarter of the fiscal year, reaching USD 874 million against USD 755 million in the same period a year earlier, according to State Bank of Pakistan data reported by Business Recorder. The central bank attributed the increase of USD 119 million largely to a higher goods import bill.

The deterioration was sharper on a monthly basis. The current account recorded a deficit of USD 356 million in September 2026, reversing a surplus of USD 133 million in the corresponding month of the previous fiscal year and widening from USD 73 million in August 2026, an increase of 388 per cent month on month.

Goods imports rose from USD 15.5 billion in the first quarter of FY26 to USD 17.7 billion in the same period this fiscal year. The report said imports are rising in line with expectations, driven by stronger domestic demand amid the ongoing economic recovery. Remittances of USD 10.8 billion in the quarter, up 13 per cent, helped finance the gap.

The State Bank has projected that resilient remittances and higher information, communication and technology exports will contain the current account deficit at 0 to 1 per cent of GDP by the end of the fiscal year. The figures put the balance of payments back in focus for policymakers managing a recovery built on rising import demand.