IT services exports increase by 14pc

Islamabad: The services exports in October rose 13.43 percent to $688.9 million from $607.4 million in the same month last year.

According to a media report, this growth has returned since February this year, mainly due to an increase in information technology exports, except for August, which saw a 6.5 percent decline.

According to data released by the Pakistan Bureau of Statistics, in rupee terms, exports in October improved by 12.34 percent to Rs191.03 billion from Rs170.28 billion in the same month last year.

During July-October of the fiscal year 2025, services exports increased by 7.91 percent to $2.60 billion from $2.41 billion in the same period last year.

In FY24, services exports were $7.8 billion, a marginal growth of 2.77 percent compared to $7.59 billion in the same period last year. Similarly, in FY23, services exports were $7.30 billion, a 2.78 percent increase compared to $7.10 billion in the previous year.

According to State Bank of Pakistan (SBP) data, Pakistan’s information technology (IT) exports reached $3.2 billion in FY24, a 24 percent increase from $2.59 billion in FY23.

The government has set an export target of $15 billion for IT exports in the next five years.

Pakistan’s IT companies are making significant inroads in the Gulf Cooperation Council (GCC) countries, particularly Saudi Arabia. The demand for IT services in the region is continuously increasing.

The SBP has increased the permissible retention limit in special foreign currency accounts of exporters from 35 to 50 percent. This development has encouraged IT exporters to repatriate profits to Pakistan, which has significantly increased the overall export numbers.

The stable exchange rate has encouraged IT companies to engage in business activities and repatriate their earnings.

On the other hand, during the same period, services imports increased by 16.82 percent to $950 million in October from $813.3 million in the same month last year. From July to October, services imports increased by 2.41 percent to $3.59 billion from $3.51 billion in the same period last year.

Services imports in FY24 increased by 17.14 percent to $10.119 billion from $8.638 billion in the previous year.

The main reason for the increase in services imports is the increase in transport and travel services fares.

The trade deficit in services during July-October 2025 decreased by 9.64 percent to $993.2 million, compared to $1.09 billion in the same months of the previous year.

The trade deficit in services increased by 26.79 percent to $261.1 million in October, compared to $205.9 million in the same month of the previous year.