ISLAMABAD: Pakis­tan’s export of services staged a strong rebound of 19.77 per cent in May reversing the four-month diminishing spell, showed data released by the Pakistan Bureau of Statistics on Tuesday.

The export of services in value grew to $616.96 million in May from $515.14m in the corresponding month last year.

After recording positive growth during the first half of the current fiscal year, the export of services started contracting in January. The merchandise exports also witnessed a consistent decline since the start of FY23.

In the first 11 months of the outgoing fiscal year, the export of services posted a paltry growth of 3.38pc to $6.65bn against $6.43bn in the corresponding period last year.

In rupee terms, the exports of services grew 44.45pc in 11MFY23 to Rs1.627 trillion against Rs1.126tr over the corresponding months of last year thanks to massive rupee depreciation.

The government has projected an export of services target at $10bn for FY23, which seems to be missed by a wide margin.

The export of services grew 17.20pc to $6.968bn in 2021-22 from $5.945bn in the preceding year.

At the same time, the import of services also contracted by 37.46pc to $7.26bn in July-May FY23 against $11.61bn in the corresponding months last year. Import of services in May dipped by 11.84pc to $862.11m from $977.85m over the same month last year.

The trade deficit in services narrowed by 88.26pc to $607.67m in 11MFY23 against $5.17bn over the corresponding period last year. In May, the trade deficit in services decelerated by 47.02pc to $245.15m against $462.70m over the preceding month.

Services exports include finance and insurance, transport and storage, wholesale and retail trade, public administration, and defence, etc.

The services sector contributed 61pc to GDP in 2020-21 from 56pc in 2005-06.

Published in Dawn, July 5th, 2023