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Pakistan’s Current Account Slips Back into Deficit at $244m in December
Pakistan’s current account turned into a $244m deficit in December 2025 as rising imports and income outflows outweighed strong remittances, SBP data shows.
ND
by News Desk
2026-01-19
Pakistan’s Current Account Slips Back into Deficit at $244m in December

Pakistan’s external financing position weakened in December 2025 as a surge in imports and persistent income outflows pushed the current account back into deficit, according to data released by the State Bank of Pakistan (SBP).

The SBP reported a current account deficit of $244 million in December, reversing a $98m surplus recorded in November. As a result, the cumulative current account balance for the first half of the current fiscal year (July–December FY26) widened to a deficit of $1.17 billion, compared to a surplus of $957m during the same period last year.

The deterioration was largely driven by the trade balance. Imports of goods rose sharply to $5.74 billion in December, while exports remained comparatively subdued at $2.75bn, widening the merchandise trade gap.

The services account also remained in the red. Services exports stood at $936m, whereas imports amounted to $1.31bn, contributing an additional $370m to the overall current account deficit.

Despite these pressures, strong workers’ remittances continued to provide crucial support to the external account. Remittance inflows reached $3.59bn in December, helping cushion the impact of higher imports and weaker trade balances.

On the financing side, the SBP data showed a net outflow of $596m in the financial account during the month. Foreign direct investment (FDI) also remained weak, registering a net outflow of $135m.

Economists note that the December figures underscore Pakistan’s continued reliance on remittances and official external financing to maintain stability in its balance of payments. With imports rebounding and export growth appearing to soften, the country’s external sector remains vulnerable to domestic economic pressures and shifting regional and global geopolitical conditions.
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