Service sector trade deficit narrows to $99m in February

March 16, 2026 (MLN): Pakistan’s services sector recorded a trade deficit of $99 million in February, reflecting a 63.2% decline on a month-on-month (MoM) basis, according to the latest data released by the State Bank of Pakistan (SBP).

The deficit stood at $269 million in the previous month.

On a year-on-year (YoY) basis, the services trade deficit narrowed by 61.48%, compared with a deficit of $257 million recorded in the same period last year (SPLY).

According to the SBP data, services exports in February increased 16.69% YoY to $811 million, compared with $695 million in February 2025.

However, on a monthly basis, exports declined 7.74% MoM compared with the figures recorded in January 2026.

Cumulatively, services exports during 8MFY26 rose 18.41% YoY to $6.47 billion, compared with $5.46 billion in 8MFY25.

Among total exports in the review month, Telecommunications, Computer, and Information Services made the largest contribution, amounting to $365 million in February, reflecting a 19.28% YoY increase compared with exports in the SPLY.

Meanwhile, Other Business Services ranked second, generating $170 million during February.

Exports under this category grew 42.86% YoY, compared with $119 million in the same period last year.

However, on a sequential basis, exports of Other Business Services declined 11.92% MoM, compared with $193 million recorded in January 2026.

Additionally, transport and travel services exports contributed $91 million and $104 million, respectively, during the review month.

Meanwhile, services imports stood at $910 million in February, reflecting a 4.41% increase YoY compared with $872 million in the SPLY.

On a monthly basis, imports declined from $1.15 billion recorded in the previous month.

Cumulatively, services imports during 8MFY26 reached $8.60 billion, up 14.12% YoY compared with the level recorded in 8MFY25.

Among total imports, the largest expenditure was incurred on transport services, amounting to $405 million, which increased 24.66% YoY and 1.11% MoM.

Meanwhile, travel services imports amounted to $191 million, rising 46.48% YoY, though declining 6.31% MoM.

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