Pakistan’s current account balance swung to a deficit of $244 million in December, reversing a surplus of $98 million recorded in November, according to official data released Monday.

The deterioration was driven largely by the trade balance. Exports fell 11% year on year to $2.75 billion, while imports rose 17% to $5.74 billion, pushing the trade deficit to nearly $3.0 billion, up 67% from a year earlier.

The services account remained in deficit at $370 million, though that was an improvement from December last year, reflecting stronger inflows. The primary income deficit, which includes interest and profit repatriation, stood at $747 million, broadly stable compared with a year earlier.

Workers’ remittances provided some relief, rising 17% year on year to $3.59 billion, continuing a trend of strong inflows that has supported Pakistan’s external accounts over the past year.

On a cumulative basis, Pakistan’s current account posted a deficit of $1.17 billion in the first half of fiscal year 2026, compared with a $957 million surplus in the same period last year, as higher imports linked to economic recovery outpaced export growth.

During July-December, exports declined 5% year on year to $15.5 billion, while imports increased 12% to $31.3 billion, widening the trade gap. Remittances over the six-month period rose 11% to $19.7 billion, partly offsetting external pressures.

“The December figures point to seasonal pressures, particularly stronger import demand toward year-end and elevated profit repatriation,” said a leading analyst. “While the reversal looks sharp, it does not yet suggest a structural deterioration in the external position.”