KARACHI:

Pakistan's external account is once again showing signs of fiscal year 2015-16, when an uptick in the economy increased imports due to rising demand widened the current account deficit (CAD).

Heavy primary income outflows, and sluggish foreign investment are all also contributing to widening the CAD.

Fresh data released by the State Bank of Pakistan (SBP) paints a sobering picture of the country's balance of payments for August 2025 and the first two months of FY26.

The country posted a current account deficit of $245 million in August 2025, a sharp rise from the $82 million shortfall recorded in the same month last year. According to Arif Habib Limited (AHL), this increase was driven primarily by stronger import demand.

"This increase is attributed to increased import demand

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