The external account position of Pakistan underwent a notable shift over the course of the completed fiscal year, transitioning back into a negative balance after demonstrating a healthy surplus during the preceding twelve-month cycle. According to the comprehensive tracking matrix made public by the State Bank of Pakistan, the cumulative national current account balance recorded a deficit of one hundred and thirty-nine million dollars for the entirety of fiscal year 2026, which spans from July to June. This final outturn stands in stark contrast to the substantial current account surplus of one point eighty-four billion dollars that was successfully registered during fiscal year 2025, highlighting the renewed pressure bearing down on the foreign reserves and external stability of the country.
A closer inspection of the monthly operational trends indicates that the overarching deficit was heavily accelerated by a severe downturn during the final month of the fiscal year. Throughout the month of June alone, the monthly current account balance plunged into a deep deficit of six hundred and forty-nine million dollars. This monthly performance represents a steep reversal from the matching period of the prior year, when the country enjoyed a monthly surplus of two hundred and twenty million dollars. The June data also reflects a sharp deterioration from the immediate preceding month of May 2026, when the external ledger briefly posted a highly encouraging surplus of five hundred million dollars before the late-season import surge took hold.
The widening gap in the external account is directly attributable to a substantial expansion in the national trade deficit, driven by escalating inbound shipments. Looking at the standalone trade metrics for the month of June, total national exports experienced an upward movement of eight point zero percent to land at three point fifty-five billion dollars, compared to the three point twenty-nine billion dollars recorded in the exact same month of the prior year. On a month-on-month trajectory, outbound shipments also advanced by eleven point one percent when measured against the export figure of three point twenty billion dollars established during the month of May. However, these positive export developments were entirely overshadowed by the rapid acceleration of national imports.
During the month of June, incoming foreign shipments expanded by nineteen point five percent to touch seven point zero eight billion dollars, moving far beyond the import value of five hundred and ninety-two billion dollars logged during the same month of the previous year. When held against the performance of the preceding month, imports moved upward by ten point two percent. Consequently, the combined monthly trade deficit covering both physical commodities and international services widened by thirty-four point zero percent on a year-on-year basis to settle at three point fifty-three billion dollars, while expanding by nine point two percent on a sequential monthly basis. For the entirety of fiscal year 2026, the aggregate annual trade deficit ballooned to thirty-five point fifty-one billion dollars, shifting significantly upward from the deficit of twenty-nine point sixty-four billion dollars experienced in fiscal year 2025.
The annual cumulative breakdowns reveal a persistent structural imbalance between incoming and outgoing economic flows. Over the full course of fiscal year 2026, aggregate national exports managed a minor expansion of just zero point two percent, closing at forty point eighty-eight billion dollars compared to the forty point seventy-nine billion dollars posted across the previous fiscal cycle. Conversely, annual national imports scaled up by eight point five percent to terminate at seventy-six point thirty-nine billion dollars, a noticeable increase from the seventy point forty-three billion dollars utilized in the prior fiscal period.
Finally, the central bank data indicates that crucial secondary inflows provided a steady but fluctuating buffer against the expanding trade gap. Inbound workers remittances moving through formal banking channels during the month of June registered a minor improvement of two point zero percent, climbing to three point forty-eight billion dollars relative to the three point forty-one billion dollars recorded in June of the prior year. Nevertheless, on a month-on-month basis, these essential diaspora remittances experienced a sharp contraction of eighteen point three percent when compared directly to the exceptional four point twenty-five billion dollars received during the month of May, compounding the external account pressures at the close of the fiscal year.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.