ISLAMABAD, Nov 18 (Wealth Pakistan): Pakistan’s balance of payments data for October 2025 indicates renewed pressure on the external sector, as the current account returned to deficit after posting a surplus a month earlier. According to the latest statistics released by the State Bank of Pakistan, the current account recorded a deficit of 112 million dollars in October 2025, compared to a surplus of 83 million dollars in September 2025.
Goods trade shows wider gap
The reversal in the current account was mainly driven by a larger deficit in the trade of goods and services. Exports of goods stood at 3,520 million dollars in October, falling from 3,591 million dollars in September. Imports of goods declined to 5,417 million dollars from 5,526 million dollars a month earlier. Despite the drop in imports, the trade deficit in goods remained substantial at 1,897 million dollars.
Services trade posts monthly deficit
Exports of services reached 675 million dollars in October, while services imports rose to 930 million dollars. This resulted in a services trade deficit of 255 million dollars. The combined balance on goods and services stood at a deficit of 2,152 million dollars for the month, reflecting continued pressure on the external sector.
Income inflows weaken
The income account recorded mixed changes. Primary income payments increased to 340 million dollars in October, compared to 325 million dollars in September. Secondary income inflows, including workers’ remittances and other transfers, fell to 1,978 million dollars in October from 2,247 million dollars a month earlier. Workers’ remittances amounted to 2,015 million dollars during the period.
Capital account records inflows
In the capital and financial accounts, the capital account posted inflows of 19 million dollars in October. The financial account registered a net outflow of 359 million dollars. Direct investment showed a net inflow of 33 million dollars, while portfolio investment posted an outflow of 44 million dollars. Other investment liabilities increased by 445 million dollars during the month.
REER appreciates in October
The Real Effective Exchange Rate index appreciated to 104 in October 2025 from 101.7 in September 2025. The rise in the index indicated a real strengthening of the rupee. This movement may have influenced export competitiveness during the month.
Overall deficit widens
Pakistan recorded an overall balance deficit of 402 million dollars in October 2025, compared to a deficit of 320 million dollars in September 2025. Reserve assets fell by 52 million dollars in October, reflecting pressure on the country’s external buffers.