ISLAMABAD: Paki­stan’s export of services witnessed a year-on-year paltry growth of 2.17 per cent to $538 million in the first month of the current fiscal year.

The uptick was unprecedented because the commodities exports dipped in July, according to data compiled by the Pakistan Bureau of Statistics.

In rupee terms, the exports of services grew 30.84pc in July to Rs151.182 billion against Rs115.550bn in the corresponding month last year.

In FY23, the export of services stood at $7.30bn as against $7.10bn over the previous year, indicating a growth of 2.78pc.

The import of services also witnessed a robust increase of 45.22pc to $810.93m in July from $558.43m over the corresponding month of last year. At the same time, the import of services also contracted by 38.04pc to $8.01bn in FY23 against $12.94bn in the preceding year.

The trade deficit also increased by 756.83pc to $272.93m in July from $31.85m over the corresponding month of last year. In FY23, the trade deficit in services narrowed by 87.68pc to $719.45m against $5.84bn over the corresponding period last year.

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

The services sector contributed 61pc to GDP in 2020-21 from 56pc in 2005-06.

Published in Dawn, September 5th, 2023

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