ISLAMABAD: The export of services posted a negative growth of nearly seven per cent in the outgoing fiscal year to $5.2 billion.

The export of services shrank in June after witnessing increases in the previous two months, according to Pakistan Bureau of Statistics data.

On monthly basis, the export proceeds posted a negative growth of 2.3pc in June year-on-year to $444.88m.

The services sector has emerged as the main driver of economic growth. Its share in GDP increased from 56pc in 2005-06 to nearly 59pc in 2017-18. Its major sub-sectors are finance and insurance, transport and storage, wholesale and retail trade, public administration and defence.

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

Imports of services went up 4.88pc to $10.4bn in FY18. On a monthly basis, the imports in services dropped 3.5pc to $881.02m in June.

Imports declined in transportation, travel, communications, insurance, financial, computer/information and other business services. The trade deficit in services increased 19.18pc to $5.2bn in 2017-18. However, trade deficit decelerated by 4.7pc in June to $436.2m.

Published in Dawn, August 15th, 2018