ISLAMABAD, Feb 20: Pakistan’s services exports dipped by 22 per cent in the first half of the current fiscal year over the same period of last year, suggest official data of the Statistics division issued on Wednesday.

The proceeds from export of services in absolute term reached $1.392 billion during the July-December period of the current fiscal from $1.774 billion over the corresponding period of last year.

An official said the decline in exports was the outcome of the steady decrease in export of services — transportation, communication, construction, business and royalties and license fees -- during the period under review.

On monthly basis, the export of services went up by 20.15 per cent to $313.043 million in December 2007, as against $260.539 million over the corresponding month of last year.

The official said that the export of services would increase in the coming months. The figures for January and February are not available to determine the impact of services exports.

The government is also considering further liberalisation of services sector to increase share of the services exports. Pakistan has also submitted initial offers for foreign services providers in the Geneva-based World Trade Organisation.

Pakistan faces a series of barriers to export its services to the developed countries. Until these barriers were removed, it would be difficult for Pakistan to get maximum benefits from exporting its services to the developed countries, especially in the areas of allowing movement of natural persons.

However, the opening of a few sectors to foreign services providers, the import bill has also increased manifold during the last few years.

This is clear from the fact that the import of services went up by 10.59pc in the first half of the current fiscal year to $4.673 billion against $4.226 billion over the corresponding period of last year.

The import of services, which recorded growth includes — communication, construction, computer, business services, and government services during the period under review. The services import, which declines includes -- transportation, financial services, royalties and personal, culture services during the July-September period this year over the last year.

Statistics show that the trade deficit in services sector has also widened by 33.86 per cent to $3.281 billion in the first half of the current year against $2.451 billion over the same period of last year.