By Qudsia Bano
Pakistan’s balance of payments October 2025 shows renewed pressure on the external account, with the current account returning to a deficit after posting a surplus last month.
According to the State Bank of Pakistan, the current account recorded a deficit of $112 million in October 2025, compared to a surplus of $83 million in September.
The shift was driven by a wider trade deficit in goods and services, along with a decline in primary and secondary income inflows.
Balance of payments October 2025 highlights trade deficit
Exports of goods stood at $3,520 million in October, down from $3,591 million in September. Imports of goods declined slightly to $5,417 million from $5,526 million the previous month. Despite this drop, the trade deficit in goods remained substantial at $1,897 million during October.
Services trade posts consistent shortfall
Exports of services totaled $675 million, while services imports reached $930 million, resulting in a deficit of $255 million in services trade. The combined balance on goods and services amounted to a deficit of $2,152 million for the month.
Income account shows mixed movements
The income account showed mixed movements. Primary income payments were $340 million in October, up from $325 million in September.
Secondary income inflows, including workers’ remittances and other transfers, fell to $1,978 million in October from $2,247 million in September. Workers’ remittances specifically amounted to $2,015 million.
Capital and financial accounts under pressure
In the capital and financial accounts, the capital account registered inflows of $19 million in October. The financial account showed a net outflow of $359 million.
Direct investment posted a net inflow of $33 million, while portfolio investment recorded an outflow of $44 million. Other investment liabilities rose by $445 million.
Currency strength and overall balance deficit
The Real Effective Exchange Rate (REER) index appreciated to 104 in October 2025 from 101.7 in September, reflecting a real strengthening of the rupee, which may have affected export competitiveness.
Pakistan registered an overall balance deficit of $402 million in October, compared to a deficit of $320 million in September. Reserve assets declined by $52 million during the month, indicating pressure on the country’s external buffers.
Author Profile
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Qudsia Bano is a financial correspondent focused on Pakistan's fiscal health.
Her reporting, driven by SBP data, tracks the country's vital foreign exchange reserves. Bano’s work highlights the central bank's success in stabilizing reserves near the $19-20 billion range, underscoring its crucial effort to maintain exchange rate stability.
