Current account deficit narrows to $98m in August

Pakistan's current account deficit shrank to $98 million in August, according to the State Bank, Dawn reported. That figure compares with a $342 million gap in the same month of FY26 and sits well below July's $445 million shortfall. Cumulatively, the deficit for the first two months reached $543 million, down from $853 million a year earlier.

Dawn noted that the external position still faces pressure, with the trade gap widening and oil prices above $100 per barrel amid the Gulf war. Goods exports rose to $5.445 billion over July-August while imports climbed to $11.635 billion, pushing the trade deficit up 18.1 per cent to $7.12 billion. Services trade improved, with its deficit narrowing to $562 million from $753 million.

Foreign direct investment inflows jumped 80.5 per cent to $315.9 million in August, up from $175 million a year earlier. Over the first two months, FDI climbed 24 per cent to $494.5 million. China led the August list with $113 million, followed by Canada with $50 million and the UAE with $48 million.