Service sector trade deficit shrinks by 81% in March

April 16, 2026 (MLN): Pakistan’s services trade deficit narrowed significantly to $23 million in March, down 81.45% month-on-month from a deficit of $124 million in February, according to data released by the State Bank of Pakistan.

On a yearly basis, the deficit also contracted from $120.3m recorded in the same period last year, reflecting improved external sector dynamics.

Services exports rose 16.22% year-on-year to $903m in March, compared to $777m in the corresponding month last year. On a monthly basis, exports increased by 12.88% from February 2026.

Cumulatively, exports during 9MFY26 climbed 17.06% YoY to $7.35bn, up from $6.28bn in 9MFY25.

Telecommunications, computer, and information services remained the largest contributor, generating $413m in March, up 20.06% YoY. Other business services ranked second, bringing in $197m, marking a 27.1% increase compared to the same period last year and a 16.57% rise from February.

Transport and travel services contributed $77m and $96m, respectively, during the month.

Meanwhile, services imports stood at $926m in March, up 3.19% YoY from $897.3m a year earlier, and slightly higher than $924m recorded in February.

For 9MFY26, total imports reached $9.49bn, reflecting a 10.65% YoY increase.

Transport remained the largest import category at $417m, declining 34.19% YoY but inching up 1.32% on a monthly basis. Travel-related payments stood at $156m, surging 74.55% YoY, though declining 7.69% from the previous month.

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