Pakistan’s service sector recorded a trade deficit of $286 million in August 2026, increasing by 3.62% from the $276 million deficit reported in July, according to the latest data released by the State Bank of Pakistan (SBP). Despite the month-on-month increase, the services trade gap narrowed considerably compared with the same period last year, when Pakistan recorded a deficit of $449 million.
The year-on-year improvement reflects stronger services exports during August. Pakistan’s services exports increased by 28.80% year-on-year to $872 million, compared with $677 million in August 2025. However, exports declined by 7.14% from July 2026, indicating a monthly slowdown despite the substantial annual increase. The rise in annual exports contributed to a reduction in the overall services trade deficit compared with the previous year.
Telecommunications, computer and information services remained the largest contributor to services exports during the month, generating $394 million in August. The segment recorded year-on-year growth of 16.91%, reflecting its continued importance within Pakistan’s services export base. The performance of this category includes technology-related services and other information-based activities that contribute to the country’s foreign exchange earnings.
Other business services represented the second-largest source of services export receipts, bringing in $209 million during August. Receipts from this category increased by 35.71% compared with $154 million recorded in August 2025. On a month-on-month basis, however, exports of other business services declined marginally by 0.95% from the $211 million recorded in July 2026.
Transport and travel services also contributed to the country’s services exports during the review month. Transport services generated $86 million, while travel services contributed $110 million. Together, these categories formed part of the overall $872 million in services exports recorded during August, alongside telecommunications, computer and information services and other business services.
On the import side, Pakistan spent $1.158 billion on services during August, representing an increase of 2.84% from the $1.126 billion recorded in August 2025. Services imports were lower on a monthly basis compared with the $1.215 billion recorded in July 2026. The combination of $872 million in exports and $1.158 billion in imports resulted in the $286 million services trade deficit for August.
Transport services accounted for the largest share of services import expenditure during the month, with payments reaching $473 million. Transport-related imports increased by 15.93% year-on-year, although they declined by 5.78% compared with July 2026. The figures indicate that transport remained a significant component of Pakistan’s external services payments during the month.
Travel services represented another major category on the import side, costing the country approximately $318 million in August. Travel-related payments declined by 11.17% compared with August 2025 but increased sharply by 9.66% from July 2026. Overall, the August data showed a wider monthly services trade deficit but a substantially smaller deficit compared with the same month last year, supported by stronger annual growth in services exports.
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