Pakistan’s services exports rose by 22.6 per cent in the first quarter of fiscal year 2026-27, reaching $2.72 billion in July–September. Information technology was the leading contributor, but the headline growth does not mean Pakistan has eliminated its services trade deficit. Services imports also increased, reaching $3.55 billion during the same three months.
For technology companies, freelancers, business owners and people following the economy, the important question is not simply whether exports are rising. It is how much of the growth comes from IT, how much is being offset by imported services, and what the figures can—and cannot—tell us about jobs and earnings.
The first-quarter numbers at a glance
| Measure | Q1 FY27 | Q1 FY26 | Year-on-year change |
|---|---|---|---|
| Total services exports | $2.72bn | $2.22bn | +22.60% |
| Telecom, computer and information services | $1.246bn | $1.059bn | +17.7% |
| Other business services | $622m | $486m | +27.98% |
| Transport services exports | $295m | $269m | +9.66% |
| Total services imports | $3.55bn | $3.05bn | +16.32% |
| Services trade deficit | $832.16m | $834.88m | Down 0.33% |
The figures show a growing export base, but they also show why the services balance remains under pressure. Pakistan earned more from selling services abroad, yet it spent more on imported services than it earned from exports.
How much of the export total is linked to IT?
Telecommunications, computer and information services generated $1.246 billion in the quarter, compared with $1.059 billion a year earlier. That is a 17.7 per cent increase. Using the reported totals, this category represented about 45.8 per cent of all services exports in the quarter. This percentage is a calculation from the published figures, not a separate official indicator.
The category is broader than software development alone. It includes telecommunications as well as computer and information services. It should not be described as the earnings of software houses or freelancers only. The national export total also includes other business services, transport, travel, government services and additional categories.
Other business services grew faster in percentage terms, rising 27.98 per cent to $622 million. Transport services exports increased 9.66 per cent to $295 million. The pattern suggests that the growth story is not limited to one type of digital work, even though IT-related services remain the largest single contributor in the reported breakdown.
The part of the story hidden by the export headline
Services imports increased 16.32 per cent to $3.55 billion. The difference between exports and imports left a services trade deficit of $832.16 million. A year earlier, the deficit was $834.88 million. That means the quarterly deficit narrowed by only $2.72 million, or roughly 0.33 per cent.
This is the key interpretation: a 22.6 per cent rise in exports did not translate into a comparable improvement in the services balance because imports also rose. The September result shows why monthly movements matter. Services exports in September increased 15.35 per cent year on year, while imports rose 26.38 per cent, and the monthly services deficit widened to $282.76 million.
Transport and travel services accounted for the largest portions of services imports during the quarter, according to the reported breakdown. That matters because the services balance is influenced by much more than software exports. Payments for travel, transport and other imported services can offset gains made by technology and business-service exporters.
What the figures mean for freelancers and IT businesses
For freelancers and technology companies, stronger national IT receipts are encouraging, but they are not a personal income report. Aggregate export figures do not reveal how many freelancers earned foreign currency, the average amount received by each worker, how much was retained by firms, or how many new jobs were created.
They also do not show whether the same firms are generating more revenue or whether a wider group of small businesses is entering export markets. A national increase can coexist with very different experiences across individual workers, agencies and software companies.
There is a practical lesson for independent workers and service exporters: the ability to deliver work is only one part of exporting. Businesses also need reliable internet, secure client communication, clear contracts, consistent delivery, a payment route that works for the client and provider, and accurate records of foreign receipts.
Pakistan’s recurring concerns about international payment access are relevant to that last point. Verity Pakistan has examined the payment gateway challenges facing Pakistani freelancers and online businesses. Better payment infrastructure does not automatically create export demand, but unreliable or expensive collection routes can make it harder for small providers to serve overseas clients.
What the data do not prove
- They do not measure individual earnings: the national total cannot tell a freelancer what they should expect to earn.
- They do not count jobs: higher export receipts do not automatically mean the same percentage increase in employment.
- They do not isolate software exports: the IT-related category includes telecommunications and information services.
- They do not show profitability: export receipts are not the same as company profit after salaries, software, cloud services, taxes and other costs.
- They do not show the full external balance: services are only one part of Pakistan’s trade in goods and services and its wider balance of payments.
What would make the next quarter stronger?
For exporters, the priorities are practical: build repeat business rather than depend on one client, invest in skills that buyers are willing to pay for, protect customer data, improve delivery standards and keep complete records of international receipts. These are business fundamentals, not a promise that every worker will benefit equally from a rising national total.
For policymakers, the figures point to a need to look beyond the headline growth rate. Reliable connectivity, predictable digital rules, skills development, payment access and transparent export statistics all affect the ability of small and large firms to sell services internationally. The services deficit also deserves attention, particularly the categories where import payments are growing faster than export receipts.
The next test is whether growth becomes broader and more durable
Pakistan’s services export performance in Q1 FY27 is positive, with IT-related services providing a major share of receipts. But the near-unchanged quarterly deficit shows that stronger exports alone have not yet transformed the sector’s overall external balance. The next quarters will reveal whether growth spreads across more service categories, whether imports moderate, and whether the expansion translates into broader opportunities for firms and workers.
Official data calendar: State Bank of Pakistan’s economic data release calendar.