ISLAMABAD: Pakistan’s exports of services rose by 18.27 per cent year-on-year in July — the first month of FY26 — mainly on the back of a strong performance in telecommunication, computer, and information services, official data showed on Thursday.

According to figures released by the Pakistan Bureau of Statistics, services exports increased to $745.52 million in July, up from $630.38m in the corresponding month of the previous fiscal year. On a month-on-month basis, exports rose by 4.47pc.

In rupee terms, services exports grew 20.74pc to Rs211.89bn in July compared to Rs175.49bn in the same month last year, indicating continued strength in foreign currency inflows from the sector.

The data highlights that the double-digit growth was primarily driven by a 23.77pc surge in telecommunication, computer, and information services, which reached $354m in July compared to $286m in the same period last year, according to the State Bank of Pakistan.

IT-related services lead a 23.8pc rise in telecom, computer, and information exports

Other business services also posted robust growth, rising 17.96pc to $151m from $128m a year earlier. Transport services exports increased by 21.54pc to $79m from $65m.

However, the export of travel services declined sharply by 20.33pc, falling to $47m from $59m in the same month of FY25, reflecting subdued demand or reduced outbound activity in the travel segment.

Despite the overall rise in services exports, imports of services marginally declined by 0.61pc to $871.44m in July compared to $876.83m in the corresponding month last year. On a monthly basis, however, imports rose by 3.41pc.

The slight decline in imports was largely due to reduced spending on transport and business-related services. Transport services imports dropped 2.97pc to $391m in July FY26 from $403m a year earlier. In contrast, travel services imports rose 16pc to $210m from $181m in the same period.

As a result of rising exports and easing imports, Pakistan’s trade deficit in services narrowed significantly by 48.91pc in July FY26, falling to $125.92m from $246.45m in the same month last year.

In FY25, the country’s services exports grew 9.23pc to $8.39bn, compared to $7.68bn in FY24. The momentum has largely been fuelled by consistent growth in IT-related exports since February 2024, though the sector did witness a 6.5pc dip in August 2024.

Analysts believe the performance of the services sector — especially IT and digital services — will remain a key driver of foreign exchange earnings in the current fiscal year, particularly amid volatility in goods exports.

Published in Dawn, September 5th, 2025