Pakistan’s external accounts came under renewed pressure in December 2025 as rising imports and persistent income outflows pushed the current account back into deficit, reversing gains made in earlier months.
Read More: Trade deficit surges 24% YoY to $3.7 billion in December 2025
Fresh data from the State Bank of Pakistan (SBP) showed a current account deficit of $244 million in December, compared to a surplus of $98m in November. The reversal also shifted the cumulative numbers for July–December FY26, with the six-month balance recording a deficit of $1,174m against a surplus of $957m in the same period last year.
Current Account Balance recorded a deficit of $244 million in Dec 2025 compared to a surplus of $98 million in Nov 2025.https://t.co/q3LNv3HOB0 https://t.co/fMcRUupUIA#SBPBOP pic.twitter.com/yjkTfsUOU0
— SBP (@StateBank_Pak) January 19, 2026
Much of the weakening stemmed from the trade of goods. Imports surged to $5.74bn in December, outpacing exports, which stood at $2.75bn. While the spike in imports suggests improving domestic demand and a gradual lifting of import restrictions, the widening gap underscores the challenges facing Pakistan’s export competitiveness.
The trade in services also remained in deficit. Services exports were recorded at $936m, while imports reached $1.31bn, adding roughly $370m to the monthly shortfall. The persistent deficit in the services segment reflects weaknesses in transportation, IT-related payments, and other business services.
Remittances, however, continued to offer support to the external account. Workers’ foreign transfers reached $3.59bn in December, providing significant inflows at a time when capital and financial accounts remained under strain. Even so, the financing account posted a net outflow of $596m for the month, while foreign direct investment registered a net outflow of $135m, highlighting investor caution.
Read More: Pakistan’s trade deficit spikes to $3.7bn
Economists note that the December figures point to a broader pattern: Pakistan’s external stability remains highly reliant on remittances and official inflows, while export volumes and foreign investment lag behind. With imports rebounding and global conditions uncertain, the country’s balance of payments remains exposed to shifts in sentiment and geopolitical developments.