Pakistan’s current account slipped back into deficit in December 2025 due to rising imports and persistent income outflows. The State Bank of Pakistan reported a $244 million deficit. This follows a $98 million surplus in November, signaling external pressures on the economy.
The cumulative current account for July–December FY26 showed a $1.17 billion deficit, compared with a $957 million surplus last year. The deterioration was driven mainly by trade imbalances. Imports rose sharply to $5.74 billion, while exports remained at $2.75 billion, leaving a wide gap.
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Trade in services added to the deficit. Services exports totaled $936 million, while imports reached $1.31 billion. This pushed an additional $370 million into the negative balance, highlighting ongoing structural challenges in Pakistan’s trade and services sectors.
Remittances provided some relief, totaling $3.59 billion in December. However, the financing account posted a net outflow of $596 million, and foreign direct investment recorded a $135 million net outflow. Analysts say these trends reflect Pakistan’s reliance on remittances and external funding.
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The data underscore Pakistan’s external vulnerability. While imports rebound and exports soften, the economy remains sensitive to geopolitical shifts and internal pressures. Policymakers face a balancing act to stabilize trade, strengthen exports, and maintain external financing.