Dossier
current account deficit
Coverage of current account deficit in the Nexus archive.
- Current account slips into $139m deficit in FY26
Pakistan recorded a $139 million current account deficit in FY26, reversing from a $1.838 billion surplus in FY25. Remittances increased to $41.585 billion, mitigating the deficit, while foreign direct investment fell 34% to $1.64 billion. The Gulf war disrupted oil prices and contributed to economic pressures.
- Soaring trade gap emerges as black hole for dollars
Pakistan's foreign exchange reserves are nearing $18 billion for FY26, but a widening trade deficit of $34.76 billion threatens reserves and remittances. Experts warn of a potential current account deficit, depreciation pressure on the rupee, and challenges from upcoming foreign debt payments.