Pakistan Services Export grew 23% to $1.572bn in Q1

Pakistan services export grew over 23% in the first quarter of the current financial year 2021-2022 as compared to the corresponding period of previous fiscal year 2020-2021, according to the latest data released by the Pakistan Bureau of Statistics.

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Quarter-on-quarter basis, the value of Pakistan services export reached $1.572 billion in July-September of Fiscal year 2021-2022 from $1.275bn over last fiscal year.

month-on-month basis, the growth in export of services was lower in September of present fiscal year as it grew by 15.73% to $550.91 million against $476.04m over the same month of last fiscal year.

On a month-on-month basis, export of services grew by 1.25%.

In Fiscal year 2021-2022, the export of services increased by 9.19% year-on-year to $5.937bn compared to $5.437bn during the same period of last fiscal year 2020-2021.

The growth in the export of services is mainly led by the highest-ever export of IT services. Services export includes finance and insurance, transport and storage, wholesale and retail trade, public administration and defence sectors.

The commerce ministry 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 rose from 56pc in 2005-06 to nearly 61pc in 2020-21.

On the other hand, services import reached $2.289bn on July-September of Fiscal yeat 2021-2022 against $1.809bn over the corresponding months of last year, reflecting an increase of 26.54%.

The import of services posted a growth of 17pc to $668.09m in September 2021 against $571.04m over the corresponding month of last year. On a month-on-month basis, the import of services posted a negative growth of 24.09%.

The import of services reached $7.812bn in July-June FY22 falling by 10.75% from $8.753bn over the corresponding months of last year.

The trade deficit has increased by 34.53% to $717.21m between July and September FY22 against $533.11m over the corresponding months of last year. In September, the trade deficit in services posted a growth of 23.35% to $117.18m from $95m over the corresponding month of last year.

The trade deficit in services has declined by 43.45% to $1.875bn in FY22 against $3.315bn over the corresponding months of last year.