ISLAMABAD: The export of services grew nearly four per cent in the first four months of the current fiscal year from a year ago mainly driven by information technology.

The growth was achieved at a time when the exports of commodities continued to post negative growth for the past few months, according to the latest data compiled by the Pakistan Bureau of Statistics.

In absolute terms, the value of export of services reached $2.26 billion in July-October from $2.17bn in the corresponding months of last year.

In October, the export of services was up by 1.14pc to $559.24m from $552.92m over the corresponding month of last year.

The export of services grew 17.20pc to $6.968bn in 2021-22 from $5.945bn in the preceding year.

The services export target was set at $10bn while commodities at $35bn for 2022-23.

The highest-ever growth in IT-related services pushed up the overall export figure.

Services exports also include finance and insurance, transport and storage, wholesale and retail trade, public administration, and defence sectors.

For promoting exports, the Pakistan Software Board has created an entire IT Export Strategical Framework and is executing programmes for the development of infrastructure, human capital, company capability, global marketing, strategy and research, and promotion of innovation and technologies.

The services sector has emerged as the main economic growth driver by contributing 61pc to GDP in 2020-21 from 56pc in 2005-06.

Services import

The import of services posted a negative growth of 11.83pc to $3.07bn in July-October against $3.48bn in the corresponding period last year. Import of services in October fell by 25.96pc to $730.12m this year from $986.09m over the last year.

The import of services rose 43.52pc to $12.143bn in 2021-22 against $8.461bn in the preceding year.

The trade deficit in services declined by 38.05pc to $811.92m in July-October against $1.31bn over the corresponding months of last year. In October trade deficit in service dipped by 60.55pc to $170.88m against $433.17m over the preceding month.

The trade deficit in services had declined by 105.73pc to $5.175bn in FY22 against $2.515bn in FY21.

The previous government had announced several measures in the budget 2021-22 for the promotion of the export of services, especially information technology.

Published in Dawn, December 4th, 2022