The remittance support to current account

Business Recorder said the current account looks comfortable in early FY27, with August's shortfall kept modest and the cumulative position broadly in line with the annual target. The goods trade gap, however, grew roughly 11 percent on the year over the first two months, despite a smaller import bill in August. Goods exports remain subdued, with textiles still the leader but growing only in low single digits.

Services exports rose around 29 percent on the year and now offset much of the weakness in goods shipments, according to the report. Workers' remittances stayed strong, with August inflows above USD3.6 billion, close to the July pace, even as the usual seasonal lift faded. The writer sees the formal channel stabilising at a higher structural footing, possibly because informal routes have been squeezed further.

Imports also eased for specific reasons: LNG cargoes arrived more slowly than before, full-throttle refinery output has almost eliminated diesel imports, and palm oil imports fell over the first two months. The gap between PBS and SBP import figures narrowed to around 4 percent from double digits in the previous two months. The article cautions that a sustained monthly import bill near USD6.5 billion would place greater weight on remittances.