ISLAMABAD: Pakistan’s current account deficit fell by 36% in the first two months (July-August) of fiscal year 2026-27 to $98 million, thanks to remittances from Pakistani expatriates abroad.
Advisor to the Ministry of Finance Khurram Schehzad, in a statement on X, said the current account deficit stood at $543 million in July and August of FY27, down 36% from $853 million in the same period last year.
He also said that the current account deficit went down 70% compared to the same period last year. This is mainly because of higher worker remittances and a smaller services deficit.
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"Current account deficit was 98 million US dollars in August 2026 compared to 324 million US dollars in the month last year."
According to Topline Securities, one of the leading Pakistani brokerage houses, less money paid in dividends and interest and more money coming home in remittances helped keep the current account deficit under control in the early months of this fiscal year.
"The smaller deficit was mainly because of a 127 million US dollars drop in the goods trade deficit compared to the previous month, which went down to 3 billion US dollars. This happened because imports went down to 5.5 billion US dollars and exports were 2.5 billion US dollars," Topline posted on X.
In the future, the central bank thinks that workers' remittances and more exports from the information and communication technology sector will keep the current account deficit between 0 and 1% of GDP in FY27.