Karachi, January 19, 2026 – The State Bank of Pakistan (SBP) has reported a sharp increase in the country’s current account deficit, which surged to $1.74 billion during the first half (July–December) of fiscal year 2025-26. This represents a significant shift from a current account surplus of $957 million recorded in the same period last year.
The widening deficit is primarily driven by a decline in exports and a surge in imports. According to SBP data, goods exports (FOB) fell to $15.51 billion in the first half of FY26, down from $16.32 billion during the same period last year. Meanwhile, goods imports (FOB) rose sharply to $31.33 billion from $27.90 billion, pushing the trade deficit to $15.82 billion, compared with $11.53 billion in 1HFY25.
Services trade also contributed to the overall deficit. Exports of services increased slightly to $4.77 billion, up from $4.09 billion, while services imports grew to $6.50 billion from $5.62 billion. This widened the services trade deficit to $1.74 billion, compared with $1.53 billion last year.
Despite the rising current account deficit, inflows of workers’ remittances provided some relief. Remittances rose to $19.73 billion during the first half of FY26, up from $17.85 billion in the corresponding period of FY25, helping partially offset the negative trade balance and supporting Pakistan’s external finances.
The current account deficit in the month of December 2025 recorded at $244 million as compared with surplus of $98 million in November 2025 and surplus of $454 million in December 2024.
Economists warn that if imports continue to rise while exports remain subdued, Pakistan could face further pressures on its balance of payments and foreign exchange reserves in the coming months.