Pakistan Posts $244mn Current Account Deficit in December 2025

The State Bank of Pakistan (SBP) reported a current account deficit of US$244 million for December 2025, reversing the US$98 million surplus recorded in November, primarily due to a sharp escalation in the import bill that outpaced concurrent improvements in exports and workers’ remittances.

According to the SBP’s provisional data, exports of goods and services rose to US$3.69 billion in December—reflecting a robust 20% month-on-month increase from US$3.08 billion in November. Imports, however, surged to US$7.04 billion from US$5.69 billion the prior month, exerting decisive downward pressure on the external balance.

Inward workers’ remittances offered partial mitigation, climbing 13% month-on-month to US$3.59 billion in December from US$3.19 billion in November, underscoring continued resilience in this critical foreign exchange inflow.

Notwithstanding the December shortfall, the cumulative current account position for the first half of FY26 (July–December 2025) reflected a deficit of US$1.17 billion, in marked contrast to the US$957 million surplus achieved during the corresponding period of the previous fiscal year.

On a positive note, Pakistan’s net foreign exchange reserves (excluding compulsory reserves and special cash reserves) strengthened to US$16.19 billion by end-December 2025, registering a substantial 36% year-on-year increase. This improvement signals enhanced external liquidity buffers, providing a degree of resilience amid ongoing current account pressures and volatility in global commodity prices.