Services trade deficit narrows

ISLAMABAD: The country’s services exports dipped by 4.64 per cent in May, Pakistan Bureau of Statistics (PBS) data showed on Tuesday.

Services exports during the month dipped to $434.08 million compared to $455.19m during the same month last year. The fall in monthly exports come after recording modest gains in the preceding months.

Data for the cumulative period between July-May showed services exports marginally increasing by 1.21pc reaching $4.89bn.

On the other hand, imports receded by a massive 14.45pc to $8.83bn in July-May from $10.33bn over the corresponding months of last year.

Subsequently, the reduction sharply narrowed the services trade deficit by 28.22pc to $3.94bn against $5.49bn during the corresponding period last year.

Services sector has become pivotal to the country’s economy as its share in the total gross domestic product has increased to 56pc.

Its major sub-sectors include finance and insurance, transport and storage, wholesale and retail trade, public administration and defence.

Pakistan has opened up its market particularly in banking, insurance, telecommunications and retail areas to foreign service providers.