ISLAMABAD – Pakistan’s service exports witnessed a notable increase, rising by 9.85% to $6.24 billion during the first nine months (July–March) of the ongoing fiscal year 2024–25, according to the latest data released by the Pakistan Bureau of Statistics (PBS). This marks a significant improvement from $5.68 billion recorded during the same period last year.
Strong Performance by IT and Telecom Sector
The growth was primarily driven by the telecommunications, computer, and information services sector, which saw a substantial increase of 23.7%, reaching $2.825 billion. This category alone accounted for nearly 45% of Pakistan’s total service exports, reflecting the country’s growing footprint in the global digital services market.
Other business services contributed $1.229 billion, showing a modest growth of 2.1%. Transport services also performed well, recording a 31.6% rise to $742 million. However, travel services experienced a slight contraction, falling 2.8% to $549 million.
March Performance and Broader Trends
In March 2025 alone, service exports were recorded at $743 million, reflecting a 4.9% year-on-year increase. Cumulatively, from July to February, service exports grew by 6.03%, reaching $5.459 billion.
Trade Deficit Widens Despite Export Growth
Despite the encouraging rise in exports, the country’s service imports also climbed 8.7%, reaching $8.55 billion during the same nine-month period. As a result, the services trade deficit expanded to $2.32 billion.
Policy Backing and Structural Reforms
The growth in IT and digital services has been supported by various policy incentives, including initiatives by the Pakistan Software Export Board (PSEB), Special Investment Facilitation Council (SIFC), and targeted support for freelancers and small IT exporters. These efforts have contributed to building a stronger services sector, though experts caution that sustained investment in skills, innovation, and infrastructure is critical to narrowing the trade gap.
The services sector is increasingly seen as a pillar of Pakistan’s external economy, offering resilience against traditional export volatility and holding potential for long-term sustainable growth.
This story has been reported by PakTribune. All rights reserved.
