FY26 C/A posts USD139m deficit

KARACHI: Pakistan successfully met its FY26 current account target, with the deficit contained at USD 139 million, equivalent to just 0. 03 percent of GDP and well within the State Bank of Pakistan’s projected range of 0-1 percent of GDP. According to data released by the SBP on Friday, Pakistan posted a current account deficit of USD 139 million in FY26, compared with a surplus of USD 1. 83 billion in FY25. While the current account shifted from surplus to deficit, the outcome remained well within the state bank’s projected range of 0-1 percent of GDP. This reflected improved external account management during the last fiscal year by the policy makers, analysts said. READ ALSO: SBP chief sees Pakistan’s current account in surplus for FY26 The external environment became more challenging during the fiscal year due to the conflict in the Middle East, which triggered a sharp increase in the country’s energy import bill. Despite these pressures, the SBP maintained that the current account deficit would remain contained within its earlier projection of 0-1 percent of GDP for FY26. On Month-on Month-basis, current account recorded a deficit of USD 649 million in June 2026 as against a USD 500 million surplus in May 2026 and USD 200 million in June 2025. The massive monthly current account deficit turned the cumulative surplus of USD 255 million recorded during the first eleven months of FY26 into an overall deficit of USD 139 million for the fiscal year. The deterioration was primarily driven by a widening trade deficit amid a sharp surge in energy imports, which more than offset the continued strength in workers’ remittances. The monthly current deficit was primarily attributable to higher imports, which rose by 9 percent to USD 6. 14 billion in June 2026 up from USD 5. 64 billion in May 2026. The realisation of sizable workers’ remittances also helped to contain the current account deficit in FY26 to the lower end of the earlier projected range, despite the challenging external environment. On the financing side, an increase in official inflows provided critical support in meeting external obligations. The timely realisation of planned external inflows and robust growth in workers’ remittances facilitated the SBP foreign exchange purchases, enabling its reserves to surpass the projected level of USD 18 billion by the end of June 2026. With the economy recovering and domestic demand strengthening, the SBP expects the current account deficit to widen in FY27. During FY26, Pakistan’s current account remained in deficit in seven months and recorded a surplus in five months. The highest monthly surplus of USD 1. 1 billion was recorded in March 2026, followed by USD 500 million in May 2026, USD 231 million in February 2026, USD 116 million in September 2025, and USD 68 million in January 2026. Copyright Business Recorder, 2026

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