Services exports show weak growth in July
ISLAMABAD: Services exports grew nearly 8% in July, the first month of the current fiscal year, driven mainly by IT revenues.
In absolute terms, the value of services exports reached $530 million in July from $491 million a year ago, according to the latest data released by the Pakistan Bureau of Statistics.
On a monthly basis, services exports fell 16.51% in July.
Services exports increased by 17.20% to $6.968 billion between July and June 2021-22, compared to $5.945 billion the previous year.
The government has earmarked $10 billion for the service sector and a $35 billion merchandise export target for 2022-23.
The highest growth ever recorded in information technology services boosted the overall export figure. Services exports also include finance and insurance, transportation and warehousing, wholesale and retail trade, public administration and defence.
To promote IT exports, the Pakistan Software Board has created a comprehensive IT Export Policy Framework and is executing different programs and programs accordingly through a series of projects for infrastructure development, human capital development, capacity development of business, global marketing, strategy and research, and promoting innovation and technology.
The services sector has become the main driver of economic growth contributing 61% of GDP in 2020-21 compared to 56% in 2005-06.
Imports of services posted a meager growth of 1.53 pc to 789.93 million dollars in July against 778.05 million dollars during the corresponding month of last year. On a monthly basis, imports fell by 40.02 pc in July.
In the previous fiscal year, services imports increased by 43.52 percent to $12.143 billion from $8.461 billion in the corresponding months last year.
The services trade deficit narrowed 9.48 percent to $259.86 million in July from $287.06 million in the corresponding month last year. In FY22, the gap widened by 105.73% to $5.175 billion from $2.515 billion in FY21.
Posted in Dawn, September 4, 2022