Pakistan’s services exports rise 11.7pc in 2MFY26, but deficit widens as imports surge

Pakistan’s services exports posted double-digit growth in the first two months of FY26, reaching $1.396 billion — an increase of 11.73 per cent from $1.250bn in the same period last year, official data showed.

The Pakistan Bureau of Statistics (PBS) reported that services exports in August stood at $671.98 million, up from $619.94m a year earlier, marking an 8.41pc annual increase. In rupee terms, exports rose by 9.85pc to Rs189.662bn against Rs172.651bn in August FY25. However, on a month-on-month basis, services exports fell 7.30pc compared to July.

The sector’s expansion has been largely driven by information technology and business-related services. State Bank of Pakistan data shows exports of telecommunications, computer, and information services climbed to $691m in July–August FY26, up 18.32pc from $584m in the same period last year. Exports of other business services also rose 16.66pc to $301m compared to $258m previously.

By contrast, transport services exports slipped 4.62pc to $124m from $130m, while travel services recorded a steep fall of 18.91pc, dropping to $90m in 2MFY26 against $111m a year ago.

Services exports began the fiscal year on a strong note, with July registering an 18.27pc year-on-year increase. In FY25 overall, the sector had grown by 9.23pc, reaching $8.39bn from $7.68bn. The upward trend has been consistent since February 2024, though a temporary dip of 6.50pc was recorded in August 2024.

On the other hand, services imports rose sharply, offsetting export gains. Imports reached $1.108bn in August FY26, up 13.36pc from $978.19m a year earlier, and rose 11.43pc month-on-month. During the first two months, imports totaled $2.104bn — an increase of 13.43pc from $1.855bn last year.

Within this category, transport imports declined 7.03pc to $766m in 2MFY26 from $824m, but travel imports more than doubled, surging 103.6pc to $735m compared to $361m in the same period last year.

As a result, the services trade deficit widened to $707.23m in July–August FY26, up 16.94pc from $604.79m in the corresponding period of FY25.