Pakistan’s services exports have shown significant momentum in the first five months of FY26, reflecting a structural shift in the country’s external sector toward higher-value, knowledge-driven offerings. According to the State Bank of Pakistan (SBP), services exports reached $4.77 billion in 5MFY26, up from $4.09 billion in the same period last year, marking a growth of approximately 16.5 percent.
This expansion, however, has not been uniform across all segments. Traditional services such as transport and travel, which historically formed the backbone of Pakistan’s services exports, have seen their relative share decline. Instead, modern services like information technology (IT) and Other Business Services (OBS) are emerging as the main drivers of growth, signaling a gradual reorientation of the country’s external sector.
Telecommunications, computer, and information services remained key contributors in 5MFY26, fueled by global demand for outsourcing and digital services. Alongside IT, OBS has gained traction as a significant component of Pakistan’s export portfolio. In balance-of-payments terms (IMF BPM6 classification), Other Business Services encompass a broad spectrum of professional and commercial services outside IT and financial sectors. These include management and professional consulting, legal and accounting services, engineering and technical services, marketing and creative solutions, as well as research and analytical services.
The rise of OBS reflects Pakistan’s increasing integration into global professional and knowledge-based services markets. Over the last two decades, OBS exports have steadily grown from $361 million in FY06 to $1.69 billion in FY25—a nearly 4.7-fold increase. This growth has been supported by rising global demand for professional services, the expansion of outsourcing and business process outsourcing (BPO), and the emergence of freelance and SME-driven service offerings. OBS exports have also diversified across consulting, engineering, digital marketing, and research-focused activities, further strengthening the sector’s global footprint.
By FY25, OBS accounted for roughly 20 percent of total services exports, contributing $1.69 billion out of $8.41 billion. The upward trend has continued into FY26, with OBS exports reaching $1.01 billion in the first five months, compared to $812 million in 5MFY25, translating into year-on-year growth of around 25 percent. This outpaces overall services export growth and highlights ongoing outsourcing activity, steady demand for professional services, and improved documentation of export receipts.
These developments underline a gradual but meaningful shift in Pakistan’s export structure. While goods exports continue to face structural constraints, services exports—particularly IT and OBS—are becoming an increasingly important source of foreign exchange. The growth of OBS underscores the rising significance of human capital, professional expertise, and knowledge-driven capabilities in the country’s external sector.
However, the sustainability of this trend depends on policy support, investment in digital infrastructure, and skills development. Without consistent efforts in these areas, the expansion of modern services exports could face bottlenecks. For services exports to evolve from a supplementary contributor into a durable pillar of Pakistan’s economy, sustained focus on developing the knowledge economy will be critical.
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