By Staff Reporter
KARACHI: Pakistan recorded a current-account deficit of $324 million in April, the State Bank of Pakistan said on Monday, reversing a $1.134 billion surplus the previous month and marking the first shortfall in the fiscal year after several months of surpluses.
The deficit, the widest since at least last April when the gap was a marginal $12 million, stemmed primarily from a sharp rise in the import bill that outpaced a modest increase in exports. Total exports of goods and services reached $3.47 billion, up more than 3% from $3.36 billion a year earlier. Imports, however, climbed more than 11% to $6.86 billion from $6.16 billion in April 2025.
Workers’ remittances, a key source of foreign-exchange inflows, provided some offset. Inflows rose 11% to $3.54 billion from $3.18 billion in the same month last year, according to the central bank’s data.
For the first 10 months of fiscal 2026, which runs from July to June, the current account showed a cumulative deficit of $252 million. That compares with a surplus of $1.66 billion in the corresponding period of the previous fiscal year, underscoring a broader shift in the external balance even as the economy contends with ongoing import demand.
Foreign-exchange reserves excluding the cash reserve requirement and statutory cash reserve requirement rose to $15.98 billion at the end of April, a 54% increase from a year earlier. The buildup signals stronger external buffers for the South Asian nation, which has been navigating tight liquidity and structural pressures on its balance of payments.
The April figures come as Pakistani authorities continue efforts to stabilize the economy under an International Monetary Fund program, with policymakers balancing the need to curb non-essential imports while supporting export-oriented industries.
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