Karachi: Pakistan's current account registered a deficit of US$98 million in August 2026, marking a significant 78% decrease from July's revised shortfall of US$445 million. This reduction was primarily due to a lower import bill and a smaller income outflow, which helped offset weaker exports.

According to JS Global, the two-month fiscal year 2027 (2MFY27) deficit stood at US$543 million, showing a 36% year-on-year decline. The trade deficit eased 4% month-on-month to US$3 billion. However, exports slipped by 1% year-on-year, while imports increased by 9% year-on-year. On a cumulative basis, the trade deficit for the 2MFY27 period widened by 19% year-on-year to US$6.2 billion, supported by a 15% year-on-year growth in remittances, which reached US$7.3 billion.

In August, the financial account recorded a net inflow of US$346 million, reversing from a revised outflow of US$832 million in July. This improvement was attributed to stronger foreign direct investment and increased net government borrowing, resulting in an overall balance of payments surplus of US$118 million, compared to a US$1.4 billion deficit in July.