The article analyzes how tourism affects Pakistan's balance of payments deficit. Using data from 1976 to 2019, the researchers found a non-linear connection between tourism and the deficit. Positive and negative changes in tourism impact the deficit in different ways. The balance of trade deficit, real effective exchange rate, and fiscal balance deficit also play a role in the balance of payments deficit. The study suggests that boosting the tourism sector in Pakistan could help reduce the deficit in the balance of payments.