Pakistan’s external services sector delivered a mixed financial picture in April, as the Pakistan services trade surplus dropped sharply on a monthly basis despite strong underlying export growth and a significant year-on-year improvement. According to the latest data released by the State Bank of Pakistan, the surplus stood at $24 million in April, reflecting a steep 59.32 percent decline compared to $59 million in the previous month.
The decline highlights short-term volatility in the services balance, even as broader indicators continue to show resilience and long-term expansion in export performance.
Pakistan Services Trade Surplus and Yearly Turnaround Story
While the monthly decline appears significant, the annual comparison paints a very different picture for the Pakistan services trade surplus. In the same period last year, Pakistan recorded a services trade deficit of $162 million, meaning the country has moved from deficit territory into surplus within a year.
This turnaround suggests structural improvement in export capacity, particularly in digital and business-related services, which continue to drive foreign exchange inflows.
Pakistan Services Trade Surplus Supported by Strong Export Growth
A closer look at the export performance reveals the foundation behind the Pakistan services trade surplus trend. Services exports rose by 21.7 percent year-on-year to $914 million in April, compared to $751 million in the same month last year.
On a month-on-month basis, exports also posted a slight increase of 0.33 percent compared to March, showing stable momentum despite global economic uncertainty.
Over the broader period of 10MFY26, services exports climbed 17.67 percent year-on-year to $8.27 billion, compared to $7.028 billion in 10MFY25. This sustained growth indicates rising global demand for Pakistani services, particularly in digital sectors.
Technology Sector Leads Pakistan Services Trade Surplus Growth
One of the strongest contributors to the Pakistan services trade surplus was the telecommunications, computer, and information services segment. This category generated $423 million in April alone, marking a robust 33.44 percent year-on-year increase.
This performance underscores Pakistan’s growing role in the global IT and software outsourcing market, where skilled freelancers and IT firms are increasingly competing in international markets.
Other business services also contributed significantly, bringing in $190 million during April. Although this segment grew 9.83 percent year-on-year, it showed a slight month-on-month decline of 3.06 percent compared to March, indicating some cooling after earlier gains.
Transport and travel services added $83 million and $117 million respectively, further diversifying Pakistan’s services export base.
Rising Imports Pressure Pakistan Services Trade Surplus
Despite strong exports, the Pakistan services trade surplus faced pressure from rising import costs. Services imports reached $890 million in April, increasing 2.52 percent year-on-year, while also rising compared to the previous month.
Over the 10MFY26 period, imports climbed to $10.31 billion, reflecting an 8.61 percent year-on-year increase. This rising import bill continues to challenge the sustainability of the surplus.
Transport remained the largest import expense at $377 million, even though it declined both year-on-year and month-on-month. Meanwhile, travel services emerged as a fast-growing cost category, reaching $198 million, with sharp increases of 64.79 percent year-on-year and 23.16 percent month-on-month.
Outlook for Pakistan Services Trade Surplus
The outlook for the Pakistan services trade surplus remains cautiously optimistic. Strong IT exports and rising digital services continue to strengthen the external account, but increasing import pressures, especially in travel and transport, could limit surplus expansion in the short term.
If export momentum in technology and business services continues, Pakistan may further strengthen its position in global services trade. However, managing import growth will be critical to sustaining long-term surplus stability.