The deficit follows a surplus of $98 million recorded in November 2025, which was originally reported to be at $100 million, and a surplus of $454 million in December 2024.

The deficit came on the back of a significantly higher import bill during the month.

In December 2025, the country’s total export of goods and services amounted to $3.69 billion, up nearly 20% as compared to $3.08 billion in the previous month.

Meanwhile, total imports totalled $7.04 billion in December 2025, a decrease of nearly 24%, compared to $5.69 billion in November 2025, according to SBP data.

During December 2025, Pakistan’s workers’ remittance inflows totalled $3.59 billion, compared to $3.19 billion in November 2025, representing a 13% increase on a monthly basis.

During the H1FY26, the current account recorded a cumulative deficit of $1,174 million, as compared to a surplus of $957 million in the same period last year.

 “The deficit comes mainly because of a sharp widening in the goods trade gap,” Saad Hanif, Head of Research at Ismail Iqbal Securities, said.

He added that higher imports, weaker exports and deterioration in services balance “outweighed still-strong remittance inflows, reversing November’s surplus”.

Waqas Ghani, Head of Research at JS Global, echoed similar sentiments.

“The deficit is due to a sharp rise in imports despite lower global commodity prices and higher remittances,” said Ghani.

 “We expect the current account to close the ongoing fiscal year with a deficit, driven by rising imports,” he added.

Ghani noted that during 1HFY26, imports rose 12% YoY, reflecting economic normalisation and higher intermediate overall demand, while exports declined 5% YoY, keeping the trade gap wide at $15.8 billion.

Meanwhile, Pakistan’s foreign exchange reserves (excluding CRR/SCRR) rose to $16.19 billion, reflecting a substantial 36% rise year-on-year, indicating stronger external buffers despite ongoing structural pressures on the current account.