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flag Pakistan's current account deficit narrowed in August 2025, driven by strong remittances despite trade and services shortfalls.

flag Pakistan's current account deficit narrowed to $245 million in August 2025, up from $82 million a year earlier but down from July’s revised $379 million. flag The deficit in the first two months of FY26 reached $624 million, compared to $430 million in the same period last year. flag A $2.48 billion merchandise trade deficit and a $437 million services deficit contributed to the shortfall, partially offset by $3.14 billion in remittances. flag Economists emphasize that sustained remittance inflows, stable exports, and controlled imports will be key to maintaining external balance.

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