Pakistan’s service sector recorded a trade deficit of $228 million in July 2026, marking a substantial increase from the $83 million deficit recorded in June, according to the latest data released by the State Bank of Pakistan (SBP). The monthly deficit expanded by 175%, or 2.75 times, as the value of services imported into the country remained significantly higher than the receipts generated from service exports.
The July deficit also remained lower than the deficit recorded during the same month of the previous year. Pakistan had reported a $304 million trade deficit in services in July 2025, meaning the latest monthly deficit represents a year on year improvement despite the sharp increase recorded compared with June 2026. The latest figures cover the country’s trade in services, including telecommunications, computer and information services, business services, transport and travel.
According to SBP data, Pakistan’s total service exports reached $927 million in July 2026, showing an increase of 27.34% compared with $728 million recorded in July 2025. The annual increase reflects stronger receipts from several service categories, although export earnings remained slightly below the previous month’s level. On a month on month basis, service exports declined by 1.59% from the amount recorded in June 2026.
Telecommunications, computer and information services remained the largest contributor to Pakistan’s service exports during the month. The category generated $417 million in July 2026, representing an increase of 17.8% compared with the corresponding period of the previous year. The performance of this segment continued to account for a significant share of the country’s overall service export receipts.
Other business services represented the second largest contributor to service exports during July. The category generated $218 million during the month, compared with $149 million in July 2025. This represents a year on year increase of 46.31%, making other business services one of the faster growing components of Pakistan’s service exports during the period under review.
Despite the annual increase, receipts from other business services declined slightly on a monthly basis. The July figure of $218 million was 1.36% lower than the $221 million recorded in June 2026. The monthly movement indicates that the strong year on year growth in the category was accompanied by a modest decline from the preceding month.
Transport and travel services also contributed to Pakistan’s service export receipts during July. Transport services generated $75 million, while travel services contributed $112 million during the review month. Together, the two categories accounted for $187 million of service export receipts.
On the import side, Pakistan’s expenditure on services reached $1.155 billion in July 2026. Service imports increased by 11.92% on a year on year basis compared with $1.032 billion recorded in July 2025. The increase in imports contributed significantly to the overall service sector deficit during the month, as the value of imported services remained substantially above export receipts.
Service imports also increased compared with June 2026, when Pakistan recorded service imports of $1.025 billion. The monthly increase in imports came alongside the decline in service exports, creating a wider gap between the country’s service receipts and payments during July.
Transport services represented the largest component of Pakistan’s service import bill. The country spent $438 million on transport services during July 2026. Although this was 3.74% lower than the $455 million recorded in the same month of the previous year, transport related imports increased by 4.04% compared with June 2026.
Travel services represented another major component of the import bill, with expenditure reaching approximately $291 million during July. Travel service imports increased by 18.78% compared with the corresponding month of the previous year. On a monthly basis, the increase was considerably sharper, with travel related expenditure rising by 69.19% compared with June 2026.
The substantial month on month increase in travel service payments was one of the factors contributing to the wider services trade deficit during July. At the same time, the increase in service imports across several categories outweighed the growth recorded in export receipts.
The July figures therefore present a mixed picture for Pakistan’s services economy. Service exports recorded strong annual growth of 27.34%, supported particularly by telecommunications, computer and information services and other business services. However, the country’s service import bill also expanded, reaching $1.155 billion and exceeding exports by $228 million.
The data also shows that Pakistan’s services trade position can change considerably from one month to another. The deficit increased from $83 million in June to $228 million in July, even though the annual comparison showed an improvement from the $304 million deficit recorded in July 2025.
The performance of telecommunications, computer and information services remains particularly significant for Pakistan’s service export position, with the category generating $417 million during July. Other business services also recorded substantial annual growth, reaching $218 million during the month.
Overall, Pakistan recorded $927 million in service exports against $1.155 billion in imports during July 2026, resulting in a $228 million trade deficit. While the deficit widened sharply on a monthly basis, it remained below the level recorded a year earlier, as stronger service export receipts partially offset the increase in payments for imported services.
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