# Current account deficit shrinks to $98 million in August as remittances hit $3.66bn

Source: Searchable (https://searchable.pk/news/economy/current-account-deficit-shrinks-to-dollar98-million-in-august-as-remittances-hit)
Type: News article
Author: Searchable
Published: 16 Sept 2026
Updated: 16 Sept 2026
Retrieved: 17 Sept 2026

> The gap fell from $445 million in July, with money from Pakistanis abroad up 17%. Here is why that is keeping the rupee steady, and the oil bill that could undo it.

Pakistan's current account deficit fell to **$98 million in August 2026**, down from **$445 million in July** and **$324 million in August 2025**, according to State Bank data reported on 16 September. The swing came mostly from money sent home by Pakistanis working abroad.

For the first two months of FY2026-27 (July and August), the deficit was **$543 million**, 36% smaller than the $853 million of the same period last year.

## The numbers

| August | 2026 | 2025 | Change |
|---|---|---|---|
| Exports of goods and services | $3.33bn | $3.17bn | +5% |
| Imports of goods and services | $6.64bn | $6.15bn | +8% |
| Workers' remittances | $3.66bn | $3.14bn | +17% |
| Current account balance | -$98m | -$324m | deficit 70% smaller |

Imports grew faster than exports, so the trade gap widened to about **$3.3 billion**. Remittances covered almost all of it.

Foreign exchange reserves stood at **$17.28 billion**, about 19% higher than a year earlier, Business Recorder and Pakistan Observer reported. The real effective exchange rate (REER) was 107.92 in August against 107.89 in July. A reading above 100 means the rupee is somewhat overvalued against trading partners' currencies, which makes imports cheaper and exports harder to sell.

## Why it matters to you

A small current account deficit means Pakistan needs less new borrowing to pay its import bills. That is what has kept the rupee steady: it closed at **Rs 277.27** to the dollar on Wednesday, barely changed for weeks. A stable rupee limits how much of the global oil shock reaches your fuel and electricity bills.

The risk is in the imports line. With Brent crude above $100 a barrel and petrol now **Rs 384.34 a litre**, September's oil bill will be heavier than August's. If remittances do not keep pace, the deficit can widen quickly.

## Who is keeping the account afloat

Remittances rose 17% on the year to $3.66 billion in August, more than the $3.33 billion Pakistan earned from all its exports that month. Families in Lahore, Karachi, Sialkot or a Swat village receiving that money are, in effect, financing the country's imports.

If you receive money from abroad:

1. **Compare the rate** your bank or exchange company gives against the interbank rate on our [dollar rate page](/data/usd-pkr), or the [riyal](/data/sar-pkr) and [dirham](/data/aed-pkr) pages.
2. **Use legal channels:** banks and licensed exchange companies. Hundi and hawala are illegal and leave you with no recourse if money goes missing.
3. **Convert amounts** with our [currency converter](/tools/finance/currency-converter).

## What to watch next

- **September oil import bill**, published by the Pakistan Bureau of Statistics early next month.
- **The US Fed decision** tonight at 11pm Pakistan time. A stronger dollar can pressure the rupee even with a small deficit. See our [market wrap for 16 September](/news/markets/kse-100-closes-1370-points-lower-before-fed-rupee-27727).
- **SBP's next policy meeting.** The State Bank [held its rate at 11.5%](/news/economy/sbp-holds-policy-rate-at-11-5-percent-car-loans-home-loans-savings) on 11 September; a steady external account gives it more room.

## Frequently asked questions

**What was Pakistan's current account balance in August 2026?**

A deficit of $98 million, down from $445 million in July 2026 and $324 million in August 2025. The July to August total was $543 million.

## Sources

- Pakistan posts $98mn C/A deficit in August 2026 (16 Sep 2026) (Business Recorder): https://www.brecorder.com/news/40439780/pakistan-posts-98mn-ca-deficit-in-august-2026
- Pakistan's current account deficit narrows to $98 million in August (16 Sep 2026) (Pakistan Observer): https://pakobserver.net/pakistans-current-account-deficit-narrows-to-98-million-in-august/
- Pakistan's current account deficit shrinks by 70% (16 Sep 2026) (ProPakistani): https://propakistani.pk/2026/09/16/pakistans-current-account-deficit-shrinks-by-70/
- Pakistan receives $3.66bn in workers' remittances in August (9 Sep 2026) (Geo News): https://www.geo.tv/latest/681329-pakistan-receives-366bn-in-workers-remittances-in-august-says-fm-adviser
- Rupee records gain against US dollar (16 Sep 2026) (Business Recorder): https://www.brecorder.com/news/40439776/intra-day-update-rupee-records-gain-against-us-dollar

How to cite: "Current account deficit shrinks to $98 million in August as remittances hit $3.66bn", Searchable, 16 Sept 2026, https://searchable.pk/news/economy/current-account-deficit-shrinks-to-dollar98-million-in-august-as-remittances-hit