Pakistan's trade deficit widens

Islamabad, Jan 19 (PTI) 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, a media report said on Monday.

Quoting the data by the State Bank of Pakistan (SBP), Dawn reported that the cash-strapped country recorded a current account deficit of $244 million in December, compared with a $98 million 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 $1,174 million compared to a surplus of $957 million during the same time last year.

The monthly decline was driven primarily by changes in trade. Imports of goods rose to $5.74 billion in December, while exports stood at $2.75 billion.

Trade in services also remained negative. Services exports for the month were $936 million while imports were $1.31 billion, adding $370 million to the deficit. Overall, strong remittance inflow did provide support, with workers’ remittances amounting to $3.59 billion in December.

Other notable findings were that the financing account posted a net outflow of $596 million in December, while foreign direct investment showed a net outflow of $135 million.

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, Dawn reported. PTI SH ZH ZH