ISLAMABAD: Pakistan’s export of services witnessed a decline of over 20 percent in the first 11 months of 2013-14 from a year ago.

In absolute terms, export of services fell to $4.947 billion in July-May 2014 as against $6.249bn over the corresponding period of the preceding year, showed Pak­istan Bureau of Statistics (PBS) data released on Monday.

The decline is mainly driven by decrease in export of government services.

Export of services falls by 32pc

However, a reverse trend in exports of services was witnessed in the past few months.

On monthly basis, export of services witnessed an increase of 98.81pc in May 2014 over the same month last year.

Annual export of services reached $6.618bn in July-June 2013-14 compared to $5.035bn in the corresponding period previous year.

The services sector emerged as the main driver of economic growth. The share of services sector increased from 56pc of the GDP in 2005-06 to 57.7pc in 2013-14.

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.

Still the import of services dropped to $7.016bn in July-May 2014 from $7.571bn over the corresponding months of last year, reflecting a decline of 7.33pc.

Last year, import of services declined to $7.758bn in July-June 2012-13 as against $8.227bn in the same period last year.

On a monthly basis, import of services also witnessed a decline of 15pc in May 2014 over the corresponding month of last year.

As a result of higher dip in exports, services deficit also witnessed an increase of 56.48pc to $2.069bn in July-May period of previous fiscal year as against $1.322bn over the corresponding period of last year.

Published in Dawn, July 22nd, 2014