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flag Pakistan’s current account turned to a $1.07 billion deficit in early 2025-26, driven by rising imports and a widening trade gap, despite strong remittances and reserve increases.

flag Pakistan's current account shifted to a $1.07 billion deficit in the first seven months of FY2025-26, reversing last year’s $564 million surplus, driven by a 10% year-on-year surge in imports to $36.66 billion, outpacing a slight drop in goods exports to $18.26 billion. flag The trade deficit widened to $18.4 billion, while services exports rose to $5.66 billion. flag Remittances reached $23.20 billion, supporting a $24.73 billion secondary income surplus, but this was offset by a $5.33 billion primary income deficit. flag Financial inflows turned negative with a $1.35 billion net outflow. flag Despite pressures, foreign exchange reserves rose to $17.44 billion by January 2026, mainly due to multilateral and bilateral loan disbursements.

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