Services exports rebound in September

ISLAMABAD: The export of services rebounded and posted a growth of 12.66 per cent year-on-year to $463.16 million in September, data released by the Pakistan Bureau of Statistics (PBS) showed on Wednesday.

The first two months of 2020-21 witnessed negative growth in the export of services.

However, the service exports between July-September period fell by 5.4pc to $1.225 billion as against $1.295bn over the corresponding months last year.

Export of services dipped by over 8.66pc year-on-year to $5.449bn in 2019-20 from $5.966bn in the preceding year.

After imposition of lockdown in March to contain the pandemic, the export of services have been witnessing a declining trend since then.

On the other hand, services imports dipped by 6.44pc to $540m in September from $577.17m in the corresponding month of last year. The import bill of services declined by 26.28pc to $1.764bn in July-September period against $2.393bn in the corresponding months last year.

As a result, the trade deficit in services narrowed by 53.72pc to $76.84m in September from $166.05m in the same month last year. In the first three months of the current fiscal year, the trade deficit fell 50.91pc to $538.87m as against $1.907bn over the corresponding months of last year.

The services sector has emerged as the main driver of economic growth with its share in GDP increasing from 56pc in 2005-06 to 61.4pc in 2019-20. Its major sub-sectors include finance and insurance, transport and storage, wholesale and retail trade, public administration, and defense.