Pakistan’s services exports recorded strong growth during the first five months of the current fiscal year, signaling a gradual transformation in the country’s external sector toward digital and knowledge-based activities. According to data released by the State Bank of Pakistan, services exports reached $4.77 billion in 5MFY26, up from $4.09 billion during the same period last year, reflecting an increase of nearly 16.5 percent. While the headline numbers point to healthy expansion, a closer look reveals a structural shift in the composition of exports, with modern services steadily replacing traditional segments such as transport and travel.
For decades, Pakistan’s services exports largely mirrored trends in merchandise trade and tourism, with transport and travel accounting for a dominant share. These sectors were heavily influenced by global trade volumes, fuel prices, and regional mobility. Over time, however, their relative contribution has declined as the global economy increasingly pivots toward digital and professional services. Recent data suggests that Pakistan is beginning to align with this global trend, with technology-driven services now shaping export performance more than traditional trade-linked activities.
Telecommunications, computer, and information services continued to lead growth in 5MFY26, supported by consistent demand for outsourcing, software development, and digital support services. Alongside IT exports, a notable rise has been observed in Other Business Services, commonly referred to as OBS, which has emerged as one of the fastest-growing segments within the services export basket.
Under the IMF’s balance-of-payments classification system, Other Business Services include a wide range of professional, technical, and commercial services that fall outside IT and financial services. These cover management consulting, legal and accounting services, engineering and technical support, marketing and creative services, research, analytics, and a variety of business process outsourcing activities. Collectively, these services represent Pakistan’s expanding footprint in global knowledge-based markets.
The growth of OBS has been consistent over the past two decades. State Bank figures show that exports in this category rose from $361 million in FY06 to $1.69 billion in FY25, marking nearly a 4.7 times increase. This upward trend reflects rising international demand for professional services, the global expansion of outsourcing models, and the steady development of Pakistan’s freelance, startup, and SME services ecosystem. Increasingly, Pakistani professionals are supplying consulting, design, research, engineering, and digital marketing services to clients across North America, Europe, the Middle East, and Asia.
By FY25, Other Business Services accounted for around 20 percent of Pakistan’s total services exports, with $1.69 billion out of $8.41 billion coming from this segment alone. The momentum has carried into the current fiscal year. During 5MFY26, OBS exports reached $1.01 billion compared to $812 million in the same period last year, registering growth of approximately 25 percent, well above the overall services export average. Analysts attribute this performance to continued outsourcing contracts, the expansion of remote work, better reporting of export receipts, and a broader acceptance of digital service delivery models.
These developments highlight a meaningful evolution in Pakistan’s export structure. While goods exports remain under pressure due to energy costs, limited diversification, and productivity constraints, services are becoming an increasingly important source of foreign exchange. The rise of IT and professional services underscores the growing economic value of human capital, digital skills, and knowledge-based industries.
However, sustaining this momentum will require targeted policy support. Industry stakeholders point to the need for stronger digital infrastructure, improved internet reliability, simplified export documentation, tax clarity for freelancers and service exporters, and large-scale investment in skills development. Without consistent reforms and regulatory stability, the expansion of modern services could face bottlenecks.
If supported effectively, services exports, particularly IT and Other Business Services, have the potential to become a long-term pillar of Pakistan’s external sector. The ongoing shift suggests that the country is gradually integrating into the global digital economy, where professional expertise and technological capabilities matter as much as physical goods. The coming years will determine whether this transition can deliver sustainable growth and economic resilience.
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