Current account posts $356m deficit in September

Mettis Global, citing State Bank of Pakistan data, reported that the current account slipped into a $356mn deficit in September, compared with a revised $73mn shortfall in August. A year earlier the same month had recorded a $133mn surplus, so the swing was a complete reversal. For the July to September quarter of FY27, the cumulative gap reached $874mn, which is 15.8% above the $755mn recorded a year before.

Goods imports climbed 14.3% over the year to $17.78bn for the quarter, while exports advanced 7.7% to $8.45bn. That gap widened the goods deficit by 21.1% to $9.33bn. Workers' remittances reached $10.88bn, and total secondary income of $11.61bn absorbed most of the shortfall, while services narrowed marginally to an $831mn deficit.

Goods exports rose 22.9% from August to $3.02bn in September, yet imports grew 13.0% to $6.17bn, leaving a monthly goods deficit of $3.16bn. On the financing side, net financial account inflows reached $4.16bn in the quarter, led by portfolio investment of $2.93bn, mostly in debt securities, of which $2.89bn came in September alone. Net direct investment rose 28.9% to $714mn, while the general government made net repayments of $663mn.