Updated
Updated · DAWN.com · Jul 18
Pakistan Posts $139 Million FY26 Current Account Deficit as FDI Falls 34% to $1.64 Billion
Updated
Updated · DAWN.com · Jul 18

Pakistan Posts $139 Million FY26 Current Account Deficit as FDI Falls 34% to $1.64 Billion

1 articles · Updated · DAWN.com · Jul 18

Summary

  • $139 million was Pakistan’s FY26 current account deficit, reversing a $1.838 billion surplus a year earlier, after June alone swung to a $649 million gap from a $500 million May surplus.
  • $41.585 billion in remittances kept the annual deficit contained despite Gulf war-driven pressure, while imports stayed high enough to leave a trade deficit above $35.5 billion.
  • $76.4 billion in imports and weak goods exports deepened that strain: goods exports fell to $30.843 billion, while total goods-and-services exports barely rose to $40.877 billion.
  • $1.637 billion in foreign direct investment marked a 34% drop from FY25, with Chinese inflows down to $862 million and Middle East investment also lower.
  • FY27 now looks more vulnerable because renewed Gulf conflict could lift oil prices and Pakistan, which imports about 70% of its fuel needs, may face a much heavier foreign-exchange bill.

Insights

With Gulf remittances under fire, how will Pakistan's fragile economy survive the escalating regional war?
While Pakistan's tech exports soar, can this boom shield the nation from a potential $200 oil price shock?