Karachi: Pakistan's current account posted a deficit of $139 million for the fiscal year FY26, marking a significant shift from the previous year's surplus of $1.838 billion. This represents a 108% year-over-year change, although the deficit remains modest in absolute terms. The month of June alone registered a $649 million deficit, the largest monthly gap since January 2026, fueled by a trade deficit that expanded to $3.55 billion, showing an 8% increase month-over-month and a 46% increase year-over-year.

According to JS Global, the overall balance of payments for FY26 closed with a $1.8 billion surplus. However, this surplus was increasingly financed by government borrowing rather than foreign direct investment (FDI), which saw a sharp decline of 97% year-over-year in June 2026. The shift in the current account and the reliance on borrowing over FDI raise concerns about the sustainability of Pakistan's financial position in the coming years.