Pakistan's current account posted a USD 139 million deficit in FY26, a significant shift from the USD 1.8 billion surplus in FY25, with June alone seeing a USD 649 million deficit. This deterioration was primarily due to lower monthly remittances and a 25% worsening in the goods trade deficit to USD 33.6 billion, despite overall remittances growing 9% to USD 41.6 billion. Imports reached USD 69.7 billion, the highest since FY22, with food imports at an all-time high and petroleum imports jumping 72% QoQ in 4QFY26. The State Bank of Pakistan's REER at 106.5 indicates an overvalued currency, hindering exports. This fragile external balance, coupled with potential SBP austerity measures and no expected rate cuts, suggests continued pressure on the USD/PKR exchange rate, potentially influencing local gold prices.
بحوالہ / Source: www.brecorder.com