IT exports power 13.4 per cent rise in Pakistan’s services exports

ISLAMABAD: In October, Pakistan’s services exports surged by 13.43 per cent, reaching $688.95 million, compared to $607.37 million in the same month last year.

This marks a continued growth trend since February 2024, driven largely by the strong performance of the information technology (IT) sector. The only exception was in August, when a slight 6.5 per cent decline was recorded.

According to Dawn, in terms of local currency, services exports rose by 12.34 per cent, amounting to Rs191.3 billion compared to Rs170.28 billion in October 2023, as per the Pakistan Bureau of Statistics (PBS).

During the first four months of the fiscal year 2024-25 (July-October), services exports increased by 7.91 per cent to $2.60 billion, up from $2.41 billion during the same period last year.

For the previous fiscal year (FY24), the growth in services exports was modest at 2.77 per cent, rising from $7.59 billion to $7.8 billion. In FY23, services exports grew to $7.30 billion, a 2.78 per cent increase from $7.10 billion the year before.

Focusing on IT exports, the sector continued to shine. According to the State Bank of Pakistan, IT exports climbed by 24 per cent in FY24, reaching $3.2 billion, compared to $2.59 billion in FY23. The government has set an ambitious goal of achieving $15 billion in IT exports over the next five years.

Pakistani IT firms have been making notable inroads into Gulf Cooperation Council (GCC) countries, especially Saudi Arabia, where demand for IT services has been rising steadily.

A recent policy shift has further supported IT exporters. The State Bank of Pakistan increased the allowable retention limit for exporters in their Specialised Foreign Currency Accounts from 35 per cent to 50 per cent.

This change has encouraged IT companies to repatriate more of their earnings back to Pakistan, contributing to higher export figures. Additionally, a stable exchange rate has also played a role in motivating IT businesses to bring their revenues home.

However, alongside the rise in exports, the import of services also saw a significant increase. In October, imports grew by 16.82 per cent, reaching $950.08 million, up from $813.32 million in the same month last year.

Over the July-October period, service imports rose slightly by 2.41 per cent, totalling $3.59 billion compared to $3.51 billion in the corresponding period last year

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