Pakistan's external current account returned to deficit in the first half of FY2025-26, posting a shortfall of $1.174bn compared with a surplus of $957m in the same period last year, as rising trade gaps outweighed stronger remittance inflows. According to the State Bank of Pakistan's monthly Balance of Payments summary, the current account recorded a deficit of $244m in December 2025. This contrasts with a surplus of $98m in November and a $454m surplus in December 2024. The deterioration was largely driven by a widening goods trade imbalance. During July-December FY2025-26, the deficit in trade of goods reached $15.818bn, significantly higher than the $11.583bn shortfall recorded in the corresponding months of FY2024-25. In December alone, the goods trade gap stood at $2.986bn, compared with $2.439bn in November and $1.784bn in December last year. Services trade also remained in deficit. In the first half of FY26, the services balance showed a $1.738bn shortfall, up from $1.530bn in the same period of t he previous fiscal year. For December 2025, the services deficit was $370m, widening from $168m in November and $250m in December 2024. Combined, the overall trade deficit in goods and services during July-December FY26 reached $17.556bn, compared with $13.113bn a year earlier. In December, the combined gap amounted to $3.356bn, up from $2.607bn in November and $2.034bn in December 2024. The primary income account registered a deficit of $4.617bn in the first half of FY26, slightly narrower than the $4.769bn recorded in the corresponding period last year. However, secondary income offered some support. Workers' remittances totalled $19.733bn during July-December FY26, up from $17.847bn in the same period of FY25. Consequently, the secondary income balance posted a surplus of $20.999bn, compared with $18.839bn in the previous fiscal year's first half. Despite stronger remittance inflows, the expanding trade deficit pushed Pakistan's current account back into negative territory during the first six months o f FY26, highlighting persistent pressures on the country's external balances.