Pakistan witnessed a significant rise in its services exports during the first seven months of the current fiscal year, with figures showing an increase of 18.78 percent compared to the same period last year. The Pakistan Bureau of Statistics (PBS) revealed that from July to January 2025-26, the country’s services exports reached $5.659 billion, up from $4.764 billion recorded during the corresponding months of the previous fiscal year. This growth highlights the expanding role of the services sector in Pakistan’s overall export portfolio.
Alongside the increase in exports, the country also experienced a notable rise in services imports during this period. Imports of services climbed by 17.46 percent, reaching $7.734 billion compared to $6.584 billion in the same timeframe last year. This upward trend in both exports and imports indicates a growing engagement with global service markets, reflecting increased demand for foreign services as well as the country’s expanding service-based offerings.
However, the growth in imports outpaced that of exports, resulting in a wider services trade deficit. The deficit expanded by 14 percent, reaching $2.074 billion, up from $1.819 billion in the previous year. This growing gap underscores the challenges Pakistan faces in balancing its services trade, despite the positive momentum in export growth. It also points to the need for strategic policies to boost export competitiveness while managing import reliance.
Focusing on the monthly performance, January 2026 saw a remarkable year-on-year increase in services exports, which surged by 31.12 percent compared to January 2025. Exports in January 2026 were recorded at $885.09 million, a substantial rise from $675.03 million in the same month last year. This sharp monthly growth reflects seasonal factors as well as ongoing improvements in sectors such as IT, telecommunications, and financial services, which contribute significantly to the country’s export earnings.
Meanwhile, services imports in January 2026 also rose sharply by 23.29 percent, climbing from $965.08 million in January 2025 to $1.189 billion. This increase further emphasizes the growing demand for foreign services, possibly driven by expanding business activities and technological advancements requiring international collaboration and outsourcing.
On a month-to-month basis, however, both exports and imports of services experienced a decline in January 2026 compared to December 2025. Exports dropped by 6.34 percent from $945.02 million in December to $885.09 million in January, while imports fell by 11.77 percent from $1.348 billion to $1.189 billion. These fluctuations are typical in trade data due to seasonal variations and shifting market dynamics, but they also highlight the volatility that the services sector can experience in short-term periods.
Overall, the data from the Pakistan Bureau of Statistics underscores the growing importance of the services sector in the country’s economy. With exports showing strong upward trends and imports also rising, the sector remains a critical area for economic growth and foreign exchange earnings. Policymakers and industry stakeholders will need to focus on sustaining export momentum while addressing the widening trade deficit to ensure balanced and sustainable development in the services domain.
