Services sector has gained significance throughout the world and its contribution towards GDP has increased in most of the countries. The developments in the field of technology have further strengthen the significance of services sector as the services trade volume has increased. Pakistan has also followed the same route as share of services sector in GDP increased considerably whereas the growth rate of services sector is also higher as compared to agriculture and industrial sector of Pakistan. The study examines the revealed comparative advantage of Pakistan with top ten trading partners in Asian region for the time period of 2007-2017 and finds that Pakistan has comparative advantage in most of the services categories. The study also applied the ARDL approach on the data from 1980-2017 to explore the factors affecting the services trade and the results point out that exchange rate and world demand of services positively impacts the services export of Pakistan. The study recommends that government should focus on growth of human capital in order to promote services exports of Pakistan. Apart from that, FTA in services trade can also increase the services exports of Pakistan Supervisor:- Dr. Hafsa Hina