Pakistan’s services exports grew significantly in fiscal year 2025, reaching $8.39 billion, mainly due to strong performance in telecommunications, computer, and information services. This marks a 9.23% increase from last year’s $7.68 billion, according to Pakistan Bureau of Statistics (PBS). The growth reflects a steady recovery and expansion in the services sector, which has been showing consistent gains since February 2024, except for a brief 6.5% decline in August.
In rupee terms, services exports rose by 7.86%, reaching Rs 2.345 trillion compared to Rs 2.174 trillion in the previous year. This positive trend persisted despite currency fluctuations, showing resilience in the sector. June’s year-on-year data revealed a 12.91% jump, with exports hitting $726.68 million compared to $643.59 million in June 2024. The momentum is largely driven by technology-related services, which continue to dominate Pakistan’s export portfolio.
State Bank of Pakistan data shows that telecommunications, computer, and information services — the largest segment of services exports — surged by 18.18% to $3.809 billion, up from $3.223 billion last year. Other business services also posted a 7.35% increase, reaching $1.665 billion, while transport services exports rose by 27.86% to $982.0 million, fueled by higher demand for logistics and cargo movement. However, travel services exports fell by 4.88%, dropping to $721.0 million from $758.0 million.
This growth comes after two years of slow gains, with services exports rising by only 2.77% in FY2024 and 2.78% in FY2023. In FY2023, exports stood at $7.30 billion, compared to $7.10 billion in FY2022. The government has set an ambitious target of increasing IT exports to $15 billion in the next five years, aiming to make the digital economy a key driver of future growth.
On the import side, services imports increased by 2.01% in FY2025, reaching $11.02 billion from $10.79 billion a year earlier. However, in June, imports dropped sharply by 24.01% year-on-year to $851.56 million, compared to $1.122 billion in the same month last year. Transport payments saw a slight decline of 0.68% to $4.645 billion, while travel imports rose by 6.17% to $2.406 billion, reflecting an increase in outbound tourism and foreign travel.
Despite higher imports, Pakistan’s services trade deficit narrowed by 15.84% in FY2025, falling to $2.618 billion from $3.11 billion last year. The downward trend continued in June, with the deficit plunging by 73.9% year-on-year to $124.89 million, compared to $478.41 million in June 2024. This improvement highlights the positive impact of strong export growth combined with moderated import spending.