ISLAMABAD, Oct 16: Services sector export dipped by 3.71 per cent in the first two months (July-Aug) of the current fiscal year over the same months last year.

Federal Bureau of Statistics data showed that proceeds from services export totalled $423.188m against $439.494m over last year. The declining trend in the services exports aggravated further in the wake of recent financial sector crisis.

Like commodities, the trade in services is also slowing down due to high cost of doing business, particularly due to the high energy cost. Marked reduction was observed in the export of financial services, and tourism etc.

The import of services also recorded a decline by 2.52 per cent to $1.490m during July-Aug against $1.529m last year.

However, the growth in import of services was recorded in August 2008 as it grew by 4.82 per cent to $796.521m against $759.895m over the corresponding month of last year.

The deficit in the trade of services, reached $1.068 billion during the period under review as against $1.089 billion over last year, showing 2.04pc decline.

On monthly basis, the deficit in services soared by 10.14 per cent to $596.659m in August 2008 as against $541.709m over the same month last year.