Pakistan posts $98mn C/A deficit in August 2026

The State Bank of Pakistan reported a current account deficit of $98 million in August 2026, a significant decrease from the $445 million deficit seen in July 2026 and the $324 million deficit in August 2025. The deficit was attributed to an increase in imports and a modest rise in exports, with total exports reaching $3.33 billion in August 2026, up over 5% from $3.17 billion in the same month the previous year.

However, total imports rose to $6.64 billion, an increase of more than 8% from $6.15 billion in August 2025. Workers' remittance inflows also increased to $3.66 billion in August 2026, a 17% year-on-year rise. For the fiscal year 2026-27 (MFY27), the current account showed a cumulative deficit of $543 million, a 36% decrease from the $853 million deficit in the same period last year.

The country's foreign exchange reserves, excluding the Cash Reserve Ratio and Statutory Reserve Ratio, grew to $17.28 billion, a 19% increase year-on-year, signaling stronger external buffers despite ongoing structural pressures on the current account. Pakistan's REER, or Real Effective Exchange Rate, showed a marginal increase of 0.02% to 107.92 in August 2026 from 107.89 in July 2026.

A REER above 100 indicates uncompetitive exports and cheaper imports, whereas a rate below 100 suggests the opposite. Meanwhile, the Nominal Effective Exchange Rate Index (NEER) declined by 0.79% month-over-month in August 2026 to a provisional value of 38.02 from 38.32 in July 2026.