Pakistan's current account posts $324M deficit in April as imports surge 22%

Pakistan's current account swung to a deficit of $324 million in April, reversing a $1.13 billion surplus the previous month, as a sharp jump in goods imports outweighed steady remittance inflows.

According to the State Bank of Pakistan (SBP) data, the current account deficit in 10 months of FY26 stands at $252 million, against a $1.66 billion surplus a year earlier.

The April figures mark a sharp turnaround from three consecutive months of surplus, pushing the fiscal year-to-date balance back into deficit territory after a brief recovery.

Why did Pakistan's current account swing into deficit?

The reversal was led by a sharp widening in the goods trade gap.

Goods imports surged 22.04% month-on-month to $5.97 billion in April, up from $4.89 billion in March due to higher oil imports.

Finance Minister Muhammad Aurangzeb said Pakistan's oil import bill rose by more than $1 billion between March and April. The increase came as the Iran war and disruptions around the Strait of Hormuz lifted global energy prices.

Pakistan relies heavily on imported fuel and liquefied natural gas (LNG). The country has faced mounting pressure on its external account since regional energy routes were disrupted earlier this year.

Exports edged up just 1.23% to $2.56 billion, pushing the goods trade deficit to $3.41 billion. That compares with $2.37 billion in March and $2.64 billion in April 2025.

The 10MFY26 (July to April) trade deficit stood at $26.93 billion, up from $21.32 billion last year.

How did workers' remittances change in April?

Workers' remittances rose 11.39% year-on-year to $3.54 billion in April, up from $3.18 billion in the same month last year. They fell 7.62%, however, from the $3.83 billion recorded in March.

In the 10-month period, remittances totaled $33.86 billion, up 8.49% from $31.21 billion a year earlier. The inflows partially cushioned the external position.

How did services trade perform in April?

The services account stayed in a modest surplus of $24 million in April. That compares with a $162 million deficit in the same month last year.

Services exports rose 21.7% year-on-year to $914 million. The improvement helped offset some of the pressure from the goods trade balance.

The primary income deficit, which captures interest payments and profit repatriation, widened to $657 million. That is slightly larger than the $614 million recorded a year earlier.