Pakistan’s current account deficit fell sharply to $98 million in August 2026, down around 70 percent from the revised $445 million deficit recorded in July.

The August deficit was also lower than the $324 million shortfall recorded in August 2025. The July figure was revised upward from the previously reported $328 million.

Despite the monthly deficit, Pakistan’s current account position improved during the first two months of Fiscal Year 2026-27 (FY27). The cumulative deficit stood at $543 million, down 36 percent from $853 million in the same period of FY26.

The improvement came mainly from a reduction in the goods trade deficit, which narrowed by $127 million from July to $3.0 billion in August.

Goods imports stood at $5.5 billion during the month, while exports reached $2.5 billion.

As a result, the overall external account position for the first two months of FY27 remained significantly better than the corresponding period last year.