Positive Trends in Pakistan’s Economy: Current Account Deficit Falls 70% in August, IT Exports Rise

Islamabad: Significant signs of improvement have emerged in Pakistan’s economy during the first two months of the current fiscal year (July and August), with a sharp decline in the current account deficit and an increase in exports among the key developments.

According to official data, Pakistan’s current account deficit fell by a significant 70% in August to just $98 million, while the cumulative deficit for the two-month period declined by 36%. Alongside the improvement in external accounts, large-scale manufacturing also recorded growth of 3% year-on-year and 9.5% month-on-month.

During the first two months of fiscal year 2027, a total of $7.3 billion flowed into Pakistan, while remittances recorded a 17% year-on-year increase. During the period, services exports increased by 29%, IT exports by 17%, while freelancer income posted a significant 42% increase.

Amid increased business activity, the registration of new companies rose by 45%, bringing the total number of registered companies in the country to 312,000.

According to economists, improvement across key economic indicators reflects increased business activity and growing economic confidence in the country.