Pakistan’s current account has slipped back into deficit, ending a brief surplus streak, as rising imports outpaced exports, according to the State Bank of Pakistan.
The State Bank of Pakistan reported that Pakistan recorded a current account deficit of $244 million in December. This marked a significant turnaround from the previous month.
In November, the country had posted a current account surplus of $100 million, offering short-lived relief to the external balance position.
Rising imports blamed for reversal
Economic experts say the shift from surplus to deficit was driven mainly by increasing imports, while exports failed to grow at the same pace. The imbalance widened pressure on the current account despite earlier signs of stabilization.
Analysts note that import-led consumption and higher input costs continue to strain Pakistan’s external finances.
Six-month figures
During the first six months of the current fiscal year, Pakistan’s current account deficit has reached $1.17 billion, according to central bank data. This reflects a clear deterioration compared to the same period last year.
In contrast, during the first six months of the previous fiscal year, the country had recorded a current account surplus of $1 billion.
Economic outlook under pressure
The latest figures underline the challenges facing Pakistan’s economy as policymakers attempt to manage imports, boost exports and stabilize foreign exchange reserves. Economists warn that sustained deficits could increase pressure on the rupee and external financing needs.
Observers say corrective measures on trade and productivity will be crucial to prevent further widening of the current account gap.
