SBP Data Shows External Account Stability Despite Rising Trade Deficit

Pakistan’s external sector displayed relative stability in December 2025 despite a widening trade deficit, according to the State Bank of Pakistan.
The country posted an overall balance deficit of $564 million in December, while the current account recorded a deficit of $1.17 billion due mainly to higher imports of goods and energy products.
Key Highlights
Exports (Goods): $15.5 billion
Imports (Goods): $31.3 billion
Trade Deficit: $15.8 billion
Workers’ Remittances: $19.73 billion
Services Exports: $4.77 billion
Foreign Direct Investment: $809 million
The secondary income balance, driven mainly by remittances, remained positive at $21 billion, helping offset the large trade gap.
Reserves Position
SBP gross reserves rose to $17.36 billion, while net reserves excluding CRR stood at $16.05 billion, reflecting improved inflows and controlled outflows.
Growth Trends
Exports showed mixed performance with a 5.8% growth in early FY26, while imports increased by over 16%, signaling higher domestic demand and industrial recovery.
Expert View
Financial analysts say Pakistan must focus on export competitiveness, value-added manufacturing, and foreign investment to maintain balance of payments sustainability in the coming quarters.