Services exports rise 6.16pc to $4.75bn in seven months, led by IT sector

Pakistan’s services exports increased by 6.16 percent to $4.748 billion in the first seven months of the current fiscal year, up from $4.472 billion in the same period last year, according to data released by the Pakistan Bureau of Statistics on Tuesday. 

The growth was largely driven by the telecommunications, computer, and IT services sector, which surged by 26.49 percent to $2.177 billion. 

In January alone, services exports rose 1.51 percent year-on-year to $691.62 million. However, certain sectors faced setbacks, with transport services exports declining by 6.94 percent to $509 million and travel services contracting by 3.61 percent to $427 million during the period under review. Other business services saw a modest increase of 3.20 percent to $967 million.

Despite the rise in exports, Pakistan’s services trade deficit widened by 17.27 percent to $1.929 billion in the July-January period compared to $1.645 billion a year ago. This was due to a 9.15 percent increase in services imports, which reached $6.678 billion, mainly driven by transport and travel expenditures.

Transport services imports rose by 8.13 percent to $2.951 billion, while travel services imports climbed 5.92 percent to $1.358 billion, reflecting higher air travel expenses. In January alone, services imports rose 3.84 percent to $1.005 billion.

The overall trend suggests that while Pakistan’s IT and telecom sectors are driving services exports, increased spending on transport and travel continues to widen the trade deficit in services.