Pakistan’s services exports surge 22.6% on IT growth

Pakistan’s services exports recorded a strong growth of 22.6 per cent during the first quarter of the fiscal year 2026-27, mainly supported by rising earnings from information technology and other business services.

According to official data, services exports reached $2.72 billion during July-September, compared with $2.22 billion in the same period last year.

The growth continued in September, when services exports increased by 15.35 per cent to $929.87 million against $806.14 million recorded in the corresponding month of the previous year.

Telecommunications, computer and information services remained the major contributors to the expansion. Exports from these sectors rose by 17.7 per cent to $1.246 billion during the first three months of FY27, compared with $1.059 billion in the same period last year.

In September alone, telecommunications, computer and information services generated $435 million in export earnings, marking an 18.21 per cent increase from $368 million a year earlier.

Other business services also posted significant growth. Their exports increased by 27.98 per cent to $622 million during July-September, compared with $486 million in the corresponding period last year.

Meanwhile, transport services exports rose by 9.66 per cent to $295 million, up from $269 million.

The positive performance follows another year of growth in the services sector. Pakistan’s services exports increased by 18.81 per cent to $10.04 billion in FY26, compared with $8.45 billion in FY25. In local currency, earnings rose by 19.33 per cent to Rs2.815 trillion from Rs2.359 trillion.

However, the country also recorded a notable increase in services imports during the first quarter of FY27. Imports climbed by 16.32 per cent to $3.55 billion, compared with $3.05 billion in the same period last year.

September witnessed an even sharper rise, with services imports increasing by 26.38 per cent to $1.21 billion from $959.53 million a year earlier.

Transport accounted for the largest share of services imports during the quarter, followed by travel-related services.

Despite the increase in imports, the overall services trade deficit remained almost unchanged. It narrowed slightly by 0.33 per cent to $832.16 million during July-September, compared with $834.88 million in the corresponding period last year.

However, the monthly deficit widened significantly in September, reaching $282.76 million, an increase of 84 per cent year-on-year.