ISLAMABAD: Pakistan’s exports of services grew by 9.23 per cent to $8.39 billion in FY25, up from $7.68bn in the previous year, mainly on the back of stronger performance in telecommunication, computer, and information services, according to data released by the Pakistan Bureau of Statistics (PBS) on Thursday.

The growth, though modest, reflects a continued recovery and expansion in the services sector, which has posted consistent increases since February 2024, despite a brief dip of 6.5pc in August.

In rupee terms, services exports rose by 7.86pc to Rs2.345tr in FY25 from Rs2.174tr in FY24, indicating a steady uptrend despite currency fluctuations.

Monthly figures for June show that services exports surged by 12.91pc year-on-year, reaching $726.68m compared to $643.59m in June 2024.

IT, transport drive modest growth; trade deficit narrows by 15.8pc

State Bank of Pakistan data reveals that exports of telecommunication, computer, and information services — the largest component of services exports — increased by 18.18pc to $3.809bn in FY25 from $3.223bn in the preceding year. Other business services also showed a positive trend, rising by 7.35pc to $1.665bn from $1.551bn.

Transport services exports jumped by 27.86pc to $982m, compared to $768m last year, supported by growing demand in logistics and cargo movement. However, travel services declined by 4.88pc to $721m in FY25, down from $758m in FY24.

The growth in FY25 follows two years of subdued expansion in services exports — 2.77pc in FY24 and 2.78pc in FY23. In FY23, services exports stood at $7.30bn, compared to $7.10bn in FY22.

The government has set an ambitious target of boosting IT exports to $15bn over the next five years, positioning the digital economy as a key driver of future growth.

On the import side, services imports edged up by 2.01pc to $11.02bn in FY25 from $10.79bn in the previous year. However, in June, services imports dropped sharply by 24.01pc to $851.56m compared to $1.122bn in the same month of last year.

The main contributors to the increase in imports were transport and travel services. Transport payments remained substantial, though slightly lower at $4.645bn in FY25 compared to $4.677bn in FY24 — a marginal decline of 0.68pc. Meanwhile, travel services imports rose by 6.17pc to $2.406bn from $2.266bn, reflecting increased outbound travel and tourism.

In FY24, services imports had grown by 17.14pc to $10.119bn from $8.638bn a year earlier, largely due to post-pandemic normalisation of travel and logistics. Despite the rise in imports, Pakistan’s services trade deficit narrowed significantly by 15.84pc to $2.618bn in FY25, compared to $3.11bn in the previous year.

The narrowing trend continued in June, with the deficit falling by 73.9pc year-on-year to $124.89m, down from $478.41m in the same month last year.

Published in Dawn, August 10th, 2025