Jul C/A deficit narrows 38pc YoY

Business Recorder reported that Pakistan's current account deficit contracted by 38 percent year-on-year in July 2026, the opening month of fiscal year 2026-27. The State Bank of Pakistan released the figures on Tuesday, showing a gap of USD 328 million against USD 529 million a year earlier. Higher goods exports and healthy workers' remittances were cited as the main drivers.

Measured against June 2026, when the deficit stood at USD 814 million, the July gap was 60 percent smaller, a reduction of USD 486 million. Goods exports grew 17 percent month-on-month and 9 percent year-on-year to USD 3 billion, the highest monthly level in 19 months. Workers' remittances rose 13 percent from a year earlier to USD 3.6 billion.

SBP Governor Jameel Ahmed voiced confidence that the deficit will stay contained during the current fiscal year. The central bank expects the gap to widen as economic activity picks up, yet to remain between 0 and 1 percent of GDP in FY27. Reserves are targeted to reach USD 20.20 billion by end-December 2026, and have already exceeded the end-June 2026 goal of USD 18 billion.