Pakistan’s trade deficit widens, pushing current account negative
Pakistan’s external financing position weakened in December 2025 due to a rise in imports and persistent income outflows that pushed the current account back into deficit.
According to data provided by the State Bank of Pakistan (SBP), Pakistan recorded a current account deficit of $244 million in December, compared with a $98m surplus in November of the same year.
As a result, the cumulative current account position for July to December FY26 rose to a deficit of $1,174m compared to a surplus of $957m during the same time last year.
The monthly decline was driven primarily by changes in trade. Imports of goods rose to $5.74bn in December, while exports stood at $2.75bn.
Trade in services also remained negative. Services exports for the month were $936m while imports were $1.31bn, adding $370m to the deficit.
Overall, strong remittance inflow did provide support, with workers’ remittances amounting to $3.59bn in December.
Other notable findings were that the financing account posted a net outflow of $596m in December, while foreign direct investment showed a net outflow of $135m.
The December data is representative of the fact that Pakistan’s external stability remains heavily dependent on remittances and official financing, imports are rebounding, and export growth seems to be softening, indicating that the balance of payments remains vulnerable to shifts in internal and geopolitical conditions.
.png)
