ISLAMABAD: The export of services shrank by 1.4 per cent to $405 million in the first month of this fiscal year, the Pakistan Bureau of Statistics said on Wednesday.

The new fiscal year started with negative growth in exports of services after witnessing a positive trend in the previous months. In 2017-18, it contracted by 7pc year-on-year to $5.4 billion.

The services sector has emerged as the main driver of economic growth with 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.

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

Contrary to this, imports of services edged up 1.39pc to $902.78 million in July as against $890.37m over the corresponding month of last year. Imports of services went up 4.88pc to $10.4bn in July-June FY18.

Services whose imports declined included transportation, travel, communications, insurance, financial, computer/information and other business services.

The trade deficit increased 3.79pc to $497.61m in July versus $479.43m in the same period last year while the trade gap in services grew 19.18pc to $5.2bn in July-June FY18.

Published in Dawn, September 13th, 2018