The gap between all money flowing into and out of Pakistan internationally — exports, imports, remittances, and transfers.
Source: SBP EasyData, monthly, BPM6 methodology.
The current account records Pakistan's transactions with the rest of the world — combining the trade balance (exports minus imports), income flows, and transfers like remittances.
A current account deficit (CAD) means Pakistan is spending more on foreign goods, services, and obligations than it earns from abroad, requiring borrowing or investment inflows to cover the gap.
Pakistan's deficits are driven mainly by a large goods trade deficit (energy and machinery imports against a narrower textile-dominated export base), partially offset by remittance inflows.
Pakistan's recurring current account deficits are the root cause of its repeated need for IMF programs and foreign borrowing — the deficit must be financed somehow, through debt, reserves, or investment.
A deficit below roughly 1-2% of GDP is generally considered manageable; deficits above 4% of GDP carry significant crisis risk, especially given Pakistan's historically thin foreign reserves.