Karachi, Feb. 18 -- Pakistan's external position has again come under strain during the first seven months of FY 2025-26, as a ballooning trade deficit offset improvements in remittances and services exports.

Citing the latest balance-of-payments data issued by the State Bank of Pakistan, the country recorded a current account deficit of USD 1.07 billion during July-January FY26. This marks a sharp reversal from the USD 564 million surplus registered in the same period last year, as reported by The Express Tribune.

According to The Express Tribune, the deterioration was primarily driven by a steep rise in imports, which outpaced export earnings. The merchandise trade gap widened to USD 18.4 billion, compared to USD 14.1 billion a year e...