KARACHI: Pakistan’s current account moved back into deficit in December 2025 after posting a surplus in November 2025, mainly due to a rise in the goods import bill.
The State Bank of Pakistan (SBP) on Monday reported that Pakistan’s current account recorded a deficit of USD244 million in December 2025, reversing a surplus of USD 98 million posted in November 2025.
The shift was mainly driven by a sharp increase in goods imports. The country’s goods import bill rose by 22 percent to USD5.737 billion in December, compared with USD4.716 billion in November, adding significant pressure to the external account.
Overall, Pakistan’s current account remained highly volatile during the first half of the current fiscal year (FY26), swinging between deficits and surpluses on a month-to-month basis. During this period, the external account recorded surpluses in only two months, while remaining in deficit for the other four.
The account posted a deficit of USD254 million in July 2025, which widened to USD325 million in August, before turning into a surplus of USD100 million in September.
The balance slipped back into a deficit of USD291 million in October, recovered to a surplus of USD98 million in November and again moved into a deficit of USD224 million in December 2025.
The SBP was already expecting this trend and volatility in this fiscal year mainly due to rising demand for the economic recovery.
Cumulatively, Pakistan’s current account posted a USD1.174 billion deficit in first half of this fiscal year compared to a surplus of USD957 million in the same period of last fiscal year (FY25).
Quarter on Quarter basis, some USD737 million deficit was recorded in first quarter (July-Sep) of FY26 and USD437 million was recorded in the second quarter (Oct-Dec) of FY26.
Analysts said that Pakistan’s current account slipped back into deficit as pressures from the external trade sector intensified, with a sharp widening in the goods trade gap emerging as the key factor.
Although exports are gradually picking up, their growth remains slower than the rise in imports.
At the same time, strong workers’ remittances continue to provide important support to the external account, they added. They said that the higher import bill is reflecting an improved domestic economic activity and higher demand for intermediate goods.
Copyright Business Recorder, 2026
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