Pakistan’s economy has faced another setback as the country’s current account slipped back into deficit in October, reversing the modest improvement seen in September.

According to the latest data from the State Bank of Pakistan (SBP), the current account recorded a deficit of $112 million in October, a sharp turnaround from the $83 million surplus reported in September. This shift has renewed concerns about the sustainability of Pakistan’s external sector.

The SBP further noted that during the first four months of the current fiscal year, Pakistan’s current account accumulated a total deficit of $730 million. This represents a staggering 256% increase compared to the same period last year, highlighting mounting pressure on the country’s balance of payments.

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Economic experts attribute the deterioration largely to a relaxed import policy, which has widened the trade gap and increased the current account deficit. Analysts point out that the government was forced to ease import restrictions in line with directives from the International Monetary Fund (IMF), which recommended removing stringent controls that had previously limited external payments.

While the easing of import restrictions has supported business activity and alleviated supply chain pressures, it has also accelerated the outflow of dollars at a time when Pakistan continues to struggle with limited foreign exchange reserves.