August's current account registers a shortfall of $245 million for Pakistan
Pakistan's economy made a significant stride in August 2025, as the country posted a current account surplus of $2.1 billion, marking the first such occurrence in 14 years. This impressive turnaround comes after a series of deficits in previous years.
In the same month, Pakistan's exports of goods (FOB) were valued at $2.51 billion, while imports stood at $4.98 billion. The services trade deficit for August 2025 was $437 million, with imports of services totalling $1,108 million and exports of services recorded at $671 million.
However, the current account surplus was largely supported by a 27% jump in workers' remittances to $3.14 billion in August 2025. This continued contribution from overseas Pakistani workers reflects a general trend of moderate growth compared to previous months, as evidenced by the latest monthly data for 2026.
Despite the positive development, economists have cautioned that the August shortfall in the current account highlights the challenge of sustaining the recent improvement. Stability in the current account, they say, hinges on resilient remittance inflows, steady export growth, and controlled import demand.
The deficit in July 2025 was initially reported at $379 million, but was later revised. In comparison, the deficit in August 2024 was $82 million.
In August 2025, Pakistan's trade deficit stood at $2.48 billion. The current account deficit for the first two months of FY26 stood at $624 million. The same period in the previous year (FY25) had a current account deficit of $430 million.
The surplus in FY25 was a welcome relief, coming after years of deficits. It was a testament to the government's efforts to stabilise the economy and improve the trade balance. However, the task of maintaining this progress remains, as the economy continues to navigate the complexities of global trade.
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