Pakistan Current Account Deficit Hits $700M Despite February Relief
Pakistan current account deficit reached $700 million in the first eight months of FY2026. This shift signals fresh pressure on the external sector. However, February brought some relief. The country posted a strong monthly surplus, improving short term outlook.
February Surplus Offers Temporary Relief
In February 2026, Pakistan recorded a $427 million surplus. This marks a clear improvement from a $85 million deficit in February 2025. In addition, January showed a modest $68 million surplus. Analysts say February delivered the strongest monthly performance since March 2025.
Trade Gap Drives External Pressure
The trade deficit remains the biggest concern. In February, the gap widened to $2.67 billion.
Exports stood at $2.48 billion, while imports reached $5.15 billion. As a result, the imbalance continues to strain the economy. During July to February, the total trade deficit hit $21.08 billion. This figure is much higher than last year’s $16.49 billion.
Exports dropped to $20.74 billion in the current period. Previously, they stood at $21.94 billion. On the other hand, imports surged to $41.82 billion. Therefore, the widening gap highlights structural weaknesses. Remittances provided strong support. Overseas Pakistanis sent $26.49 billion during this period. Experts note that without these inflows, the deficit would be much higher.
Experts Call for Structural Reforms
Economists stress the need for long-term solutions. Pakistan relies heavily on low-value exports, especially textiles. Meanwhile, regional competition continues to grow. Therefore, export diversification is critical. The primary income account also showed pressure. It recorded a $5.64 billion deficit due to profit repatriation and debt payments. In addition, foreign direct investment remained limited. This trend reflects investor caution. Experts suggest urgent reforms in industry and energy use. Without these changes, external stability may remain fragile.
