Pakistan's services sector posted a cumulative trade deficit of $1.891 billion during FY2025–26, as the growth in services imports continued to outpace export earnings, according to data released by the State Bank of Pakistan (SBP).

Despite the annual deficit, the country's monthly services trade balance returned to surplus in June, recording a $25 million surplus. However, the figure was 53.7% lower than the $54 million surplus reported in May. Compared with the same month last year, the June balance marked a significant turnaround from a $204 million deficit.

Services exports maintained strong momentum during the month, rising 36.96% year-on-year to $956 million, compared with $698 million in June 2025. On a monthly basis, exports increased 14.08% from May.

For the fiscal year as a whole, Pakistan's services exports rose 18.75% to $10.034 billion, up from $8.45 billion recorded in FY2024–25.

The Telecommunications, Computer and Information Services sector remained the largest contributor to services exports, generating $416 million in June, up 22.71% from a year earlier.

Exports under Other Business Services stood at $220 million, registering a 62.96% year-on-year increase. The segment also recorded a 26.44% month-on-month rise from $174 million in May, reflecting sustained growth in business-related services.

Meanwhile, Travel Services and Transport Services contributed $128 million and $87 million, respectively, to the country's services export earnings during the month.

On the import side, Pakistan's services imports increased to $931 million in June, up 3.22% from $902 million in the same month last year. Compared with May, imports also rose from $784 million, indicating continued demand for foreign services.

During FY2025–26, total services imports climbed 5.66% to $11.925 billion, widening the overall services trade gap.

Among imported services, Transport Services accounted for the largest share at $385 million, posting a 35.94% year-on-year increase and a 10.13% rise from the previous month.

Spending on Travel Services reached $172 million, surging 146.15% from a year earlier and 11.3% from May, reflecting a sharp increase in outbound travel-related expenditures.

The latest SBP data suggests that while Pakistan continued to record healthy growth in services exports led by information technology and business services the faster pace of imports kept the services account in deficit, resulting in a cumulative trade gap of $1.891 billion during FY26.