Pakistan, June 13 -- The government has set an ambitious remittance target of $42.4 billion for fiscal year 2026-27, banking on strong inflows from overseas Pakistanis to support the economy and help manage a widening current account deficit.

According to budget projections, the government expects the current account deficit (CAD) to rise to $3.6 billion in FY27, equivalent to around 0.7 percent of gross domestic product (GDP). This is significantly higher than the revised FY26 target of $1.1 billion, or 0.2 percent of GDP.

Officials attribute the expected increase in the deficit to a growing trade gap. For FY27, exports are projected at $32.9 billion, while imports are expected to reach $70 billion, resulting in a trade deficit of $37....