Overview
- The State Bank of Pakistan reported that the current account deficit fell to $328 million in July 2026, an improvement from a revised $814 million in June and $529 million in July 2025.
- Goods exports rebounded to about $3.0–3.1 billion in July 2026, a roughly 17% month-on-month rise and the strongest monthly level in 19 months.
- Imports stayed near $6.1–6.2 billion in July, leaving a large merchandise trade gap that widened year-on-year because import growth outpaced export gains.
- The real effective exchange rate climbed to 107.92 in July, a multi-year high that reduces export price competitiveness while primary income outflows from debt service keep external pressures in place.
- SBP says foreign-exchange reserves have passed the end-June target of about $18 billion and could reach roughly $20.20 billion by end-December 2026 if planned official and private inflows materialize, but policymakers warn that sustained remittances will be needed if import demand stays high.