Karachi: Pakistan recorded a current account deficit of $1.17 billion in December 2025, according to the State Bank of Pakistan’s data.
During July–December FY26, the current account posted a surplus of $98 million, compared with a deficit of $737 million in the same period last fiscal year, reflecting improved inflows from workers’ remittances and services exports.
However, rising imports continued to pressure the trade balance. Goods imports surged to $31.3 billion, while exports stood at $15.5 billion, widening the trade deficit to $15.8 billion in the six-month period.
Services and Remittances
Exports of services reached $4.77 billion, while imports of services climbed to $6.5 billion, keeping the services trade in deficit. On the positive side, workers’ remittances increased to $19.73 billion, providing strong support to the external account.
Financial Account and Reserves
Pakistan’s financial account recorded a net outflow of $1.32 billion, while foreign direct investment stood at $809 million during the six-month period. Portfolio investment showed net outflows due to foreign selling in Pakistani securities.
Despite pressures, SBP foreign exchange reserves improved to $16.18 billion by December 2025, compared to $11.86 billion in June.
Outlook
Economists believe that sustained remittance growth and export diversification are crucial to controlling Pakistan’s external imbalance amid rising import demand and debt servicing obligations.
