Current‑Account Gap Narrows as Exports Rebound in July 2026

Pakistan's balance of payments showed improvement in July 2026, with the current‑account deficit shrinking to $328 million, down sharply from $814 million in June and $529 million in the previous July, according to the State Bank of Pakistan.

The reduction was driven primarily by a surge in goods exports, which rose 17 percent month‑on‑month and 9 percent year‑on‑year, pushing total export earnings to roughly $3 billion. Despite the export upswing, the services sector continued to run a deficit, with services exports at $927 million against imports of $1.16 billion, creating a $228 million shortfall.

Combined, the trade deficit in goods and services widened to $3.37 billion. Remittances from overseas workers contributed $3.6 billion, while other current transfers added another $252 million, providing crucial foreign‑exchange inflows.

State Bank analysts expect the current‑account gap to narrow further by 2025 if export growth sustains and the services balance improves.