Overview: A Deficit in December 2025
Pakistan’s current account shifted into a deficit of $244 million in December 2025, according to data released by the State Bank of Pakistan (SBP). This marks a notable reversal from the previous month, when the current account posted a ₹? surplus of $100 million, underscoring a month-to-month swing that economists are watching closely.
What This Deficit Indicates
The current account tracks the flow of goods, services, and income into and out of a country. A deficit can reflect higher imports, weaker export performance, or a combination of both. In December 2025, Pakistan’s deficit suggests that outflows related to energy, machinery, or consumer goods may have outweighed inflows from trade and remittances during the month. While a single month’s figure cannot define the trend, it adds to a broader narrative about Pakistan’s external position and macroeconomic stability.
Context: Monthly and Seasonal Factors
Economic data for December often capture year-end import demand, stock adjustments, and clearance of external commitments. The SBP’s December print should be interpreted alongside oil prices, exchange rate movements, and domestic demand conditions. If energy imports or import-intensive sectors show resilience in December, the current account could stay under pressure in the near term.
Implications for Policy and the Exchange Rate
A persistent current account deficit can influence exchange rate dynamics, inflation, and foreign exchange reserves. Policymakers may consider a mix of measures—monetary tightening, import substitution, or targeted support for export-oriented sectors—to stabilize the external account. The December 2025 deficit adds another data point that authorities will weigh when calibrating policy responses in the coming quarters.
Exporters and Importers: What It Means for Business
For businesses, the December deficit may affect financing costs, import planning, and currency risk management. Export-oriented industries might look for diversification of markets and better terms of trade, while import-dependent sectors could optimize supply chains to reduce exposure to external shocks.
What Comes Next?
Analysts will be monitoring SBP data on trade, remittances, and services to gauge whether December’s deficit is an anomaly or a signal of a broader trend. Seasonal patterns, global commodity prices, and domestic policy adjustments will all play a role in shaping Pakistan’s external balance in early 2026.
Key Takeaways
- December 2025 current account deficit: $244 million (SBP).
- Direction contrasts with the prior month’s surplus, highlighting volatility in external accounts.
- Policy considerations likely to focus on stabilizing the external position and supporting export competitiveness.
