Pakistan posts $98mn C/A deficit in August 2026

Pakistan’s current account posted a deficit of $98 million in August 2026, data released by the State Bank of Pakistan (SBP) showed on Wednesday.

The latest figure follows a deficit of $445 million recorded in July 2026 and a deficit of $324 million in August 2025.

The deficit came from a significantly higher import bill and a marginal increase in exports during the month.

In August 2026, the country’s total exports of goods and services amounted to $3.33 billion, up over 5% as compared to $3.17 billion in the same month of the previous year.

Meanwhile, total imports clocked in at $6.64 billion during August 2026, an increase of over 8% on a yearly basis, as compared to $6.15 billion in the same month last year, according to SBP data.

During August 2026, Pakistan’s workers’ remittance inflows clocked in at $3.66 billion, as compared to $3.14 billion in the same month last year, reflecting an increase of nearly 17% on a yearly basis.

During 2MFY27, the current account recorded a cumulative deficit of $543 million, as compared to a deficit of $853 million recorded in the same period last fiscal year, reflecting a decrease of 36%.

Pakistan’s foreign exchange reserves (excluding CRR/SCRR) rose to $17.28 billion, reflecting a substantial 19% rise year-on-year, indicating stronger external buffers despite ongoing structural pressures on the current account.

Pakistan’s REER Index

Pakistan’s Real Effective Exchange Rate (REER) has increased marginally by 0.02% to 107.92 in August 2026 compared to 107.89 in July 2026.

A REER above 100 means the country’s exports are uncompetitive, while imports are cheaper. The situation reverses when REER stands below 100 on the index.

Meanwhile, the Nominal Effective Exchange Rate Index (NEER) decreased by 0.79% MoM in August 2026 to a provisional value of 38.02 from 38.32 in July 2026.

What is REER?

As per the central bank, REER is an index of the price of a basket of goods in one country relative to the price of the same basket in that country’s major trading partners.

“The prices of these baskets are expressed in the same currency using the nominal exchange rate with each trading partner. The price of each trading partner’s basket is weighted by its share in imports, exports, or total foreign trade,” the SBP website says.