ISLAMABAD: Exports of services witnessed a year-on-year decline of over 31 per cent in the first two months of 2016-17, the Pakistan Bureau of Statistics (PBS) said on Monday.

In absolute terms, exports of services fell to $712.75 million in July-August from $1,040.21m recorded in the same months of 2015-16.

Exports of services decreased 7.14pc to $5.4 billion in 2015-16 on an annual basis.

However, exports of services grew 10.09pc year-on-year to $390.80m in August alone.

The services sector has emerged as the main driver of economic growth, as its share increased from 56pc of gross domestic product (GDP) in 2005-06 to 57.7pc in 2014-15.

Major sub-sectors of the services sector are finance and insurance, transport and storage, wholesale and retail trade, public administration and defence.

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

Imports of services dropped to $1.33bn in July-August from $1.423bn a year ago, reflecting an annual decline of 6.45pc.

In 2015-16, imports of services decreased 10.96pc to $7.87bn.

Imports of services that witnessed a year-on-year decline during the months under review included transportation, travel, communications, insurance, financial, computer and information services.

The trade deficit in services increased 61.42pc to $619.23m in July-August from $383.61m a year ago.

Pakistan’s share in global trade in services is less than 0.06pc, although the share of services in Pakistan’s GDP is growing notably.

Published in Dawn October 18th, 2016