Hi @Boray Sudhindra Deepaksubramanyan
Welcome to our forum!
Please kindly understand that the Outlook tag here we mainly focus on general issues about Outlook desktop client. For questions with Hotmail accounts, it's suggested that you could post your case in dedicated forum for Hotmail for more professional advice.
Yes, Microsoft 365 Basic’s Outlook does include the capability to import and export emails using the .pst file format.
As far as I know, it is feasible to use the import/export .pst feature when moving Outlook items from one email account to another. More information, see: Import email, contacts, and calendar from an Outlook .pst file.
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