Advertisment

Pakistan's Service Exports Surge 6.11% in February, IT Sector Shows Robust 13% Growth

Pakistan's services exports rose by 6.11% in February, showcasing resilience. The IT sector's 13% growth highlights its role in economic recovery.

author-image
Aqsa Younas Rana
New Update
Pakistan's Service Exports Surge 6.11% in February, IT Sector Shows Robust 13% Growth

Pakistan's Service Exports Surge 6.11% in February, IT Sector Shows Robust 13% Growth

Pakistan's services sector demonstrated resilience and growth in February, marking a significant rebound after months of contraction. According to the latest data released by the Pakistan Bureau of Statistics, the services exports in February reached $627.05 million, a 6.11% increase from $590.96 million in the same month last year. This resurgence is particularly noteworthy in the IT sector, which witnessed a 13% growth during the first seven months of the current fiscal year, underscoring the sector's potential as a cornerstone of Pakistan's export economy.

Advertisment

Rebound Amidst Challenges

The increase in services exports comes after a four-month period of contraction, indicating a positive shift in Pakistan's economic landscape. In rupee terms, the export of services grew by 11.08% in February to Rs175.06 billion, up from Rs157.59 billion in the same month last year. Despite a slight shrinkage of 1.37% in the July-February period of FY24 compared to the same period last year, the services sector's performance in February paints a promising picture for Pakistan's trade balance. The IT exports, in particular, have shown a robust increase, contributing significantly to the overall growth in services exports.

Import Pressures Persist

Advertisment

While the services exports have shown positive momentum, the import of services has also seen a considerable increase, growing by 21.14% to $784.95 million in February from $647.96 million over the corresponding month of last year. This rise in imports has contributed to a widening trade deficit in services, despite the gains in exports. The import of services increased 28.18% to $6.97 billion in the 8MFY24 against $5.44 billion in the corresponding period last year, pointing to growing pressures on Pakistan's balance of payments.

Looking Forward

The recent data on services exports and imports highlights the dynamic nature of Pakistan's trade landscape. The growth in IT and other services exports is a positive development, suggesting potential areas for economic expansion and diversification. However, the increasing import bill underscores the challenges ahead in managing the trade deficit and stabilizing the economy. As Pakistan navigates these complex trade dynamics, the focus on boosting exports, particularly in high-growth sectors like IT, will be crucial for achieving sustainable economic growth.

Advertisment
Advertisment