ISLAMABAD: Pakistan’s exports of services posted a growth of over 22.94 per cent in the first five months of the current fiscal year (5MFY22) from a year ago, according to the latest data released by the Pakistan Bureau of Statistics.

In absolute terms, the value of export of services reached $2.72bn between July-November 2021 from $2.22bn over the corresponding months of last year.

On a monthly basis, the growth in exports of services also posted growth in November as it posted a growth of 15.41pc to $582.93m against $505.12m over the corresponding month of last year.

On a month-on-month basis, exports of services increased 6.40pc.

In FY 21, the export of services incr­e­ased 9.19pc year-on-year to $5.937bn in FY21 compared to $5.437bn during the same period last year.

The growth in the export of services are mainly led by the highest-ever export of information technology (IT) services. Services exports also include finance and insurance, transport and storage, wholesale and retail trade, public administration and defence sectors.

The Ministry of Commerce has projected $7.5bn target of services exports for the year 2021-22. The services sector has emerged as the main driver of economic growth as its share in the GDP increased from 56pc in 2005-06 to nearly 61pc in 2020-21.

On the other hand, services imports reached $4.04bn in July and November 2021 against $3.01bn over the corresponding months of last year, reflecting an increase of 34.27pc.

The imports of services posted growth of 50.19pc to $832.09m in November 2021 against $554.03m over the corresponding month of last year. On a month-on-month basis, the imports of services posted a negative growth of 3.48pc.

In the FY21, the imports of services reached $7.812bn in July-June FY21 falling by 10.75pc from $8.753bn over the corresponding months last year.

The trade deficit has increased by 65.64pc to $1.323m in July and November 2021 against $799.02m over the corresponding months of last year. In November, the trade deficit in services posted growth of 409pc to $249.16m from $48.91m over the corresponding month of last year.

In Budget 2021-22, the government had announced several measures to promote export of services especially IT services. The incentives offers to exporters are related to tariff and non-tariff in order to boost exports of services.

Published in Dawn, January 9th, 2022