By Moaaz Manzoor

Pakistan’s services exports remained relatively stable in April 2026, supported mainly by continued strength in information technology and other business services despite mounting pressure on the country’s overall external balance, according to data released by the State Bank of Pakistan (SBP).

The latest SBP statistics showed the combined goods and services balance (A-B) recorded a deficit of $3.39 billion in April 2026 compared with a deficit of $2.31 billion in March, as imports increased at a significantly faster pace than exports.

Total exports of goods and services stood at $3.47 billion in April 2026 compared with $3.44 billion in March, while imports of goods and services rose sharply to $6.86 billion from $5.74 billion a month earlier.

Despite the widening trade gap, services exports continued to provide support to the external sector.

According to SBP data, exports of services increased slightly to $914 million in April 2026 from $911 million in March and $800 million in February.

Among services exports, telecommunications, computer and information services remained the largest contributor, reaching $423 million in April compared with $413 million in March and $365 million in February.

The steady expansion in ICT-related exports reflects rising demand for Pakistan’s digital services, freelance activity and software-related business operations in international markets.

Other business services also remained a major export category, bringing in $190 million in April 2026 compared with $196 million in March.

Travel services exports increased to $117 million from $95 million a month earlier, while transport services exports remained broadly stable at $83 million. Government goods and services exports totalled $66 million during the month.

The figures indicate that Pakistan’s services sector, particularly ICT-related activity, is gradually emerging as a more important source of foreign exchange earnings amid continued volatility in merchandise trade.

On the import side, services imports rose modestly to $890 million in April 2026 from $852 million in March.

Transport services remained the largest component of services imports at $377 million, reflecting freight and shipping-related payments associated with external trade activity.

Travel-related imports increased to $198 million from $156 million a month earlier, while imports of telecommunications, computer and information services rose to $68 million. Imports of financial services also increased slightly to $58 million during April.

Meanwhile, goods imports surged to $5.97 billion in April 2026 from $4.89 billion in March, contributing significantly to the widening trade deficit.

Goods exports rose marginally to $2.56 billion from $2.53 billion in March, but the increase remained insufficient to offset higher imports.

The data suggest that Pakistan’s expanding ICT and business services exports are helping improve the composition of the country’s external sector by generating relatively high-value foreign exchange earnings with relatively lower dependence on imported raw materials.

The growth in digital services exports also reflects increasing integration of Pakistani freelancers, software firms and technology companies into global markets.

However, the broader external position remains vulnerable because of high import dependence, energy-related payments and uncertainty in international markets.

Rising oil prices, higher freight costs and geopolitical tensions in the Middle East continue to pose risks to Pakistan’s trade balance and external financing outlook.

The latest SBP figures suggest that while ICT and other business services are becoming increasingly important for export diversification, Pakistan’s external-sector stability still depends heavily on strengthening overall export competitiveness and containing import pressures over the medium term.

Credit: INP-WealthPk