ISLAMABAD: Pakistan’s exports of services witnessed growth of nearly 19 per cent year-on-year to $468.42 million in October, the Pakistan Bureau of Statistics (PBS) said on Wednesday.
The increase will help the government control the widening current account deficit in 2016-17.
In the first three months of the current fiscal year, the exports of services recorded negative growth. Similarly, they fell 24.61pc to $1.61 billion in July-Oct. The annual drop was 7.14pc to $5.46bn in 2015-16.
The services sector has emerged as the main driver of economic growth. Its share increased from 56pc of the gross domestic product (GDP) in 2005-06 to 57.7pc in 2014-15.
Its major sub-sectors are finance and insurance, transport and storage, wholesale and retail trade, public administration and defence.
Pakistan has opened up its market to foreign service-providers, particularly in banking, insurance, telecommunications and retail areas.
The import of services dropped 4.96pc to $2.712bn in July-Oct. On a monthly basis, the drop was 13.44pc in October when services imports clocked up at $649.26m.
They fell 10.96pc to $7.87bn in 2015-16 against $8.843bn of services imports in the preceding year.
Services whose imports witnessed the decline included transportation, travel, communications, insurance, financial, computer/information and other business services.
The trade deficit in services increased 53.93pc to $1.01bn in July-Oct on a year-on-year basis.
Pakistan’s share in the global trade in services stood at less than 0.06pc in 2016 while its share in GDP posted a substantial increase.
Courtesy : Dawn News