Export of services reported an increase of 17.71 percent during the first 11 months of 2021-22, as per the data released by the Pakistan Bureau of Statistics (PBS) on Monday.
The value of export of services touched $6.318 billion between July-May 2021-22 from $5.367 billion over the same months of a year ago.
The export of services increased 9.38 percent to $514.11 million in May compared to $470.02 million in the same period last year.
On a month-on-month basis, the export of services grew by 19.93 percent. However, exports of services slowed down in May, which is not a good indicator.
The highest-ever growth was recorded in the export of IT-related services which shot up the overall figure.
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Services exports also include transport and storage, wholesale and retail trade, finance and insurance, public administration, and defense.
Moreover, the ICT export remittances, comprising telecommunication, computer, and information services during 11MFY22 jumped to $2.38 billion, showing an increase of 25.45 percent over $1.89 billion in 11MFY21.
The ministry of commerce projected a services export target of $7.5 billion for 2021-22.
The services sector emerged as the major economic growth driver by contributing 61 percent to GDP in 2020-21 from 56 percent in 2005-06, SBP reported.
Simultaneously, the import of services also grew 35.49 percent to $10.284 billion in July-May of 2021-22 compared to $7.59 billion in the parallel months of last year.
The import of services surged 48.50 percent to $894.04 million in May compared to $602.05 million in the corresponding month last year. On a month-on-month basis, it showed a negative growth of 13.96 percent.
Moreover, the trade deficit in services grew by 78.43 percent to $3.966 billion in 11MFY22 compared to $2.222 billion in 11MFY21. In May, the trade deficit increased by 187.76 percent to $379.93 million from $132.03 million in the corresponding month last year.
The former government announced numerous measures in the budget 2021-22 for the promotion of the export of services, mainly information technology.
Pakistan’s trade deficit in merchandise reached $48.259 billion in 2021-22 from $31.076 billion last year, showing an increase of 55.29 percent, as per the PBS report.
