Wholesale and retail trade retained its leading position as information and communication, public administration, health and education recorded robust growth.
ISLAMABAD: Wholesale and retail trade remained the largest component of Pakistan’s services sector during FY2025-26, contributing 30.47% of total services output and 17.80% of the country’s Gross Domestic Product (GDP), according to the Pakistan Economic Survey 2025-26.
The survey, based on data compiled by the Pakistan Bureau of Statistics (PBS), showed that the services sector accounted for 58.42% of Pakistan’s GDP and expanded by 4.09% during the fiscal year, maintaining its position as the country’s largest contributor to economic output.
Wholesale and retail trade retains top position
Wholesale and retail trade continued to dominate the services sector, accounting for 30.47% of total services output and 17.80% of national GDP.
The sub-sector recorded growth of 3.71% during FY2025-26, supported by stronger domestic economic activity, improved consumer spending and expanding commercial activity.
Transport and storage remains second largest
The transport and storage sector retained its position as the second-largest services sub-sector, contributing 17.72% to the services sector and 10.35% to GDP.
The sector expanded by 2.31% during the fiscal year, reflecting continued growth in logistics, freight movement and transportation services.
Information and communication posts strong growth
The information and communication sector emerged as one of the fastest-growing segments of the economy, recording growth of 7.52% during FY2025-26.
The sector accounted for 5.40% of total services output and 3.15% of GDP, with its expansion driven by continued digitalisation, increased telecommunications activity and rising demand for information technology services.
Public administration records highest expansion
Among all services sub-sectors, public administration and social security (general government) recorded the strongest growth, expanding by 8.54% during the fiscal year.
The segment represented 7.60% of the services sector and contributed 4.44% to Pakistan’s GDP.
The survey also highlighted strong performance in other public service activities. Human health and social work services grew by 6.85%, while the education sector expanded by 5.23%, reflecting increased activity across both public and private institutions.
Real estate and hospitality maintain momentum
The real estate sector accounted for 10.03% of the services sector and 5.86% of GDP, recording growth of 3.63% during FY2025-26.
Meanwhile, the accommodation and food services sector, including hotels and restaurants, contributed 2.55% to services output and 1.49% to GDP, posting growth of 3.94% during the year.
Finance sector records modest growth
The finance and insurance sector remained one of the smaller components of the services economy, accounting for 2.52% of services output and 1.47% of GDP.
However, the sector expanded by just 0.32%, making it the slowest-growing services sub-sector during FY2025-26.
Other private services remain significant
Other private services continued to play an important role in Pakistan’s economy, contributing 15.23% of the services sector and 8.90% of GDP.
The category recorded growth of 3.69% during the fiscal year, reflecting steady expansion across a broad range of private-sector service activities.
The Pakistan Economic Survey 2025-26 highlights the continued importance of the services sector as the primary driver of Pakistan’s economy. While wholesale and retail trade retained its dominant position, strong growth in information and communication, public administration, healthcare and education further reinforced the sector’s central role in supporting economic growth during FY2025-26.