KARACHI: Pakistan recorded a current account deficit of $98 million in August 2026, sharply narrowing from $445 million in July and $324 million in August 2025.
The July deficit was revised upward from $328 million to $445 million, according to the latest data.
The current account deficit for the first two months of fiscal year 2027 stood at $543 million, down 36% from $853 million recorded during the same period of fiscal year 2026.
The improvement was mainly driven by a $127 million month-on-month reduction in the goods trade deficit, which narrowed to $3 billion in August.
Imports declined to $5.5 billion during the month, while exports stood at $2.5 billion, contributing to the narrower trade gap.
The latest figures indicate an improvement in Pakistan's external account position during the opening months of FY27.
Earlier, Information Minister Attaullah Tarar, defended the federal budget in the National Assembly and called it a relief-focused plan.
He said enforcement actions helped recover around Rs800 billion in revenue. He described the budget as the start of economic stability and growth in the country. Tarar said the budget had received positive attention internationally.
He added that economists, media groups, and opinion makers were appreciating it. He also asked the opposition not to weaken Pakistan image through negative remarks. Talking about salaried people, he said major tax relief has been given.
Income up to Rs50,000 is now tax-free. He added that those earning between Rs50,000 and Rs100,000 will only pay 1% tax. He said relief has also been extended to the middle class and professionals.
