Karachi: Pakistan's balance of payments (BoP) remains stable in the short term, bolstered by financing inflows, although there is a heavy reliance on borrowed funds rather than non-debt sources. The burgeoning growth in imports compared to exports is widening the external gap, increasing pressure on the BoP and necessitating dependence on external financing.
According to JS Global, the overall current account balance showed a deficit of $244 million in December 2025. This deficit is attributed to a significant increase in imports, despite a decrease in global commodity prices and a rise in remittances. In the first half of the fiscal year 2026, the current account deficit reached $1.2 billion, a stark contrast to a surplus of $957 million in the same period the previous year.
Expectations are that the current account will end the current fiscal year with a deficit, driven by the rising level of imports. However, the stability of global commodity prices may alleviate some of the import pressures, while robust remittance inflows are anticipated to provide support for external stability.
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