Pakistan services exports posted one of their strongest performances in recent years during the fiscal year 2025-26, climbing by 18.81 per cent as the information technology sector continued to anchor the country’s earnings from abroad. The growth, confirmed through official data compiled by the Pakistan Bureau of Statistics, stands out against a backdrop of uneven trends in merchandise trade, underlining how the services side of the economy has become an increasingly reliable source of foreign exchange.
According to the data, services exports rose to $10.04 billion in FY26, up from $8.45 billion in the same period a year earlier. Measured in rupee terms, the increase was even more pronounced, with services exports climbing 19.33 per cent to Rs2.815 trillion in FY26 compared with Rs2.359 trillion in FY25.
What Is Driving the Growth in Pakistan’s Services Exports
The expansion was not evenly spread across a single month. On a monthly basis, exports grew by 37.20 per cent in June alone, reaching $955.91 million against $696.60 million recorded in the same month the previous year. This jump reflects continued momentum in the telecommunications, computer, and information services category, which has remained the largest contributor to services earnings throughout 2025-26.
For context, FY25 itself had already shown healthy momentum, with services exports growing 9.23 per cent to $8.39 billion from $7.68 billion in FY24. The latest figures suggest that growth has not only continued but accelerated meaningfully in the most recent fiscal year.
Sector-Wise Breakdown of Services Exports
Data compiled separately by the State Bank of Pakistan gives a clearer sector-by-sector picture of where the gains came from:
- Telecommunications, computer, and information services surged 20.42 per cent to $4.60 billion in FY26, up from $3.82 billion a year earlier. This category remains the single largest driver of the overall increase.
- Other business services rose 27.22 per cent to $2.15 billion in FY26, compared with $1.69 billion the previous year.
- Travel services were the fastest-growing category by percentage, expanding 52.74 per cent to $1.115 billion during the year, up sharply from $730 million a year earlier.
- Transport services were the exception to the broader upward trend, falling 6.61 per cent to $933 million in FY26, down from $999 million in FY25.
The strength in travel services and the continued dominance of IT-related earnings show that Pakistan’s services export base is gradually diversifying, even as technology-related income remains the largest single contributor by a wide margin.
Services Imports and the Narrowing Trade Deficit
While exports grew strongly, imports of services also increased, though at a more modest pace. Service imports rose by 5.67 per cent to $11.93 billion in FY26, compared with $11.29 billion in the preceding fiscal year. In June specifically, service imports grew 3.48 per cent to $932.81 million, up from $901.40 million in the same month last year.
Transport remained the largest category of service imports, with its value rising to $4.88 billion from $4.69 billion in the previous year, a growth of 4.05 per cent. Travel services accounted for the second-largest share of imports, climbing to $2.91 billion during the year under review compared with $2.41 billion in FY25, marking a significant increase of 20.74 per cent.
Because exports grew at a much faster rate than imports, the overall trade deficit in services narrowed considerably. The gap fell by 33.38 per cent to $1.894 billion in FY26, down from $2.843 billion in the preceding year. A narrower services deficit is a meaningful development for Pakistan’s broader external account, particularly at a time when the country continues to manage pressure on its foreign exchange reserves and current account.
Why This Data Matters for Pakistan’s Economy
The consistent rise in Pakistan services exports, and particularly the outsized role played by IT and IT-enabled services, reflects the growing global demand for outsourced technology and business process work from Pakistani firms and freelancers. Combined with a sharp rebound in travel-related earnings, this performance suggests that services are increasingly filling gaps left by more volatile merchandise trade figures.
For policymakers, the narrowing services trade deficit offers some breathing room on the external front, even as transport imports and a decline in transport export earnings point to areas that still need attention. If the current trajectory holds, the services sector is likely to remain one of the more dependable pillars supporting Pakistan’s foreign exchange inflows in the years ahead.
Published in SouthAsianDesk, August 7th, 2026
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