Pakistan ended fiscal year 2026 with a current account deficit of $139 million, reversing a surplus of $1.84 billion the previous year, according to the State Bank of Pakistan. The shift was driven by a widening trade gap — with goods imports reaching $76.4 billion against stagnant exports — though record remittance inflows of $41.6 billion prevented a sharper deterioration. Analysts warn the outlook for FY27 is more precarious, as an ongoing Gulf war has already pushed oil prices higher and could squeeze both remittances and foreign direct investment, which fell 34% to $1.64 billion in FY26.