KARACHI: Pakistan’s current account returned to deficit in April, as a widening trade gap offset gains from overseas remittances, the State Bank of Pakistan (SBP) said Monday.
The central bank reported a current account deficit of $324 million for April 2026, reversing a surplus of $1.13 billion in March. The country had posted a deficit of $12 million in April 2025.
For the first 10 months of the fiscal year 2025-26, Pakistan recorded a cumulative deficit of $252 million, compared with a surplus of $1.66 billion in the same period a year earlier.
Analysts said the deterioration was driven largely by a surge in imports that widened the trade deficit despite continued growth in remittances.
Figures from the Pakistan Bureau of Statistics showed the trade deficit widened nearly 20% to about $32 billion between July and April, up from $26.6 billion in the same period last year.
Economists cited higher domestic demand and external payment pressures as key factors behind the increase.
Remittances from overseas workers provided some relief, rising 8.5% to $33.9 billion during the July-April period, compared with $31.2 billion a year earlier, according to the central bank.
Earlier, The State Bank of Pakistan (SBP) had launched a nationwide “Go Cashless” campaign ahead of Eid-ul-Adha 2026 to promote secure, transparent, and convenient digital transactions in cattle markets across the country under the government’s broader Digital Pakistan vision.
The central bank said the initiative aims to reduce dependence on cash-based dealings during the peak Eid-ul-Adha trading season, when cattle markets witness massive commercial activity and the majority of transactions are traditionally conducted in cash.
SBP emphasized that the growing use of digital payment systems will help improve financial transparency, reduce risks associated with carrying cash, and strengthen the country’s digital financial ecosystem.
More read, SBP launches ‘Go Cashless’ campaign ahead of Eid-ul-Adha
This year, the campaign has been significantly expanded, with the number of participating cattle markets increased from 54 in the previous year to 96 in 2026. The SBP noted that this expansion reflects rising acceptance of digital financial services and continued efforts to promote financial inclusion across seasonal trading hubs.