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Transforming services trade through digital infrastructure

20 0
16.04.2025

Pakistan’s exports have long been defined by textiles and agricultural goods. But a hushed shift in services exports is now happening that could change the structure of our economy.

Services exports are crucial to Pakistan’s economy. They not only generate valuable foreign exchange earnings but also showcase country’s potential in impactful industries like information technology, finance, and tourism.

The traditional determinants have shaped the service trade but with the use of digital platforms and e-commerce, a new landscape has emerged which makes it necessary to see how digital adoption has shaped services exports.

Digital infrastructure (broadband connections, digital devices, cell phones) makes digital trade possible. By driving economic diversification, creating employment opportunities, and boosting global competitiveness, service exports can transform the foundation of Pakistan’s economic future.

Since 2014, Pakistan’s IT service exports have grown by a staggering 2.7 times. According to Pakistan Bureau of Statistics, “in February 2024, Pakistan’s services exports rose by 6.11% to $627.05 million compared to the same month last year, with a stronger 11.08% growth in rupee terms. During July–February FY24, exports slightly declined by 1.37% to $5.08 billion but increased by 22.34% in rupees. In FY23, services exports totaled $7.30 billion, up 2.78% from the FY23. IT exports grew by 13% in the first seven months of FY24. Meanwhile, services imports jumped 21.14% in February to $784.95 million”1. These are not just numbers but there is a goal for the future.

Pakistan’s ICT services sector has shown strong and consistent growth, with........

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