Services exports grow by 9.19pc to $5.937bn

Exports of services increased by 9.19 per cent to $5.937 billion in the outgoing financial year (FY21) compared to $5.437bn during the same period of previous year. According to the data released by the Pakistan Bureau of Statistics, exports of services posted growth of 53.56pc to $579.03 million in June this year against $377.08m over the corresponding month of last year. On a month-on-month basis, exports of services went up by 18.39pc.

The growth in services exports is mainly led by the highest-ever export of IT services recorded in the outgoing fiscal year by 47pc to $2bn.

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

The commerce ministry has set a $7.5bn target of services exports for 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 59pc in 2017-18.

On the other hand, services imports fell by 10.75pc to $7.812bn in July-June FY21 from $8.753bn over the corresponding period of last year.

On a monthly basis, the imports of services posted a negative growth of 7.31pc year-on-year to $597.04m. On a month-on-month basis, imports declined by 29.93pc.

The trade deficit in services sector has declined by 43.45pc to $1.875bn in July-June FY21 against $3.315bn over the corresponding period of last year.

In June 2021, trade deficit in services fell by 93.26pc to $18.01m on a year-on-year basis.