THREE reports last Friday — a widening food trade gap, return to a current account deficit, and the government’s shift to daily fuel pricing amid renewed Gulf tensions — reveal how fragile Pakistan’s external sector remains, despite the recent macroeconomic stabilisation.

The headline current account deficit of just $139m in FY26 appears reassuring. But the composition of the external account tells an uncomfortable story: Pakistan avoided a large deficit not because it exported more, but because expats sent home $41.6bn. Without those remittances, the external account would have deteriorated sharply. Exports remained largely stagnant. Goods exports declined, while the modest increase in services exports merely offset part of the loss.........

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