Pakistan’s current account posted a deficit of $324 million in April 2026, data released by the State Bank of Pakistan (SBP) showed on Monday.
The deficit follows a surplus of $1,134 million recorded in March 2026 and a deficit of $12 million in April 2025.
The deficit came from a significantly higher import bill and a marginal increase in exports during the month.
In April 2026, the country’s total export of goods and services amounted to $3.47 billion, up over 3% as compared to $3.36 billion in the same month of the previous year.
Meanwhile, total imports clocked in at $6.86 billion during April 2026, an increase of over 11% on a yearly basis, as compared to $6.16 billion in the same month last year, according to SBP data.
During April 2026, Pakistan’s workers’ remittance inflows clocked in at $3.54 billion, as compared to $3.18 billion in the same month last year, reflecting an increase of 11% on a yearly basis.
During the 10MFY26, the current account recorded a cumulative deficit of $252 million, as compared to a surplus of $1.66 billion recorded in the same period last fiscal.
Pakistan’s foreign exchange reserves (excluding CRR/SCRR) rose to $15.98 billion, reflecting a substantial 54% rise year-on-year, indicating stronger external buffers despite ongoing structural pressures on the current account.
Pakistan’s REER Index
Pakistan’s Real Effective Exchange Rate (REER) has increased to a seven-year high of 105.80 in April 2026 compared to 104.29 in March 2026.
“This is also higher than the last 10-year average of 102.68,” said Topline Securities.
A REER above 100 means the country’s exports are uncompetitive, while imports are cheaper. The situation reverses when REER stands below 100 on the index.
Meanwhile, the Nominal Effective Exchange Rate Index (NEER) decreased by 0.35% MoM in April 2026 to a provisional value of 37.89 from 38.02 in March 2026.
What is REER?
As per the central bank, REER is an index of the price of a basket of goods in one country relative to the price of the same basket in that country’s major trading partners.
“The prices of these baskets are expressed in the same currency using the nominal exchange rate with each trading partner. The price of each trading partner’s basket is weighted by its share in imports, exports, or total foreign trade,” the SBP website says.
