By Moaaz Manzoor

Pakistan’s services exports increased by 18.8 percent to $5.7 billion during July–January FY2025-26, supported mainly by strong growth in information and communication technology (ICT) services, according to the Monthly Development Update released by the Ministry of Planning, Development and Special Initiatives.

The report highlights that the expansion in services exports reflects growing activity in the ICT sector, which continued to play a major role in Pakistan’s services trade performance during the fiscal year.

According to the update, ICT exports recorded growth of 20 percent during the review period, contributing significantly to the overall increase in services exports.

While services exports showed strong growth, services imports also increased during the same period. The report notes that services imports rose by 17.4 percent to $7.7 billion during July–January FY2025-26.

The report presents developments in services trade as part of broader trends observed in Pakistan’s external sector during the fiscal year.

According to the update, merchandise exports reached $18.3 billion during July–January FY2025-26, supported by the resilience of textile exports, which recorded growth of 3.3 percent compared with the previous year.

At the same time, imports increased to $36.7 billion, registering growth of 9.8 percent during the same period. The report states that the rise in imports reflects higher demand for capital goods, intermediate goods and consumer goods in line with improving economic activity.

In addition to trade developments, the report notes that workers’ remittances also remained a key support for the external sector. Remittance inflows reached $23.2 billion during July–January FY2025-26, marking an increase of 11.3 percent compared with the same period last year.

The Planning Ministry’s update indicates that developments in services exports, merchandise trade and remittance inflows collectively reflect strengthening external sector activity during the fiscal year.

Overall, the report notes that Pakistan’s external sector performance during FY2025-26 reflects improving economic momentum, with services exports showing notable expansion driven by growth in ICT-related services.

Credit: INP-WealthPk