ISLAMABAD: Services exports shrank year-on-year by 6.51 per cent to $619.73 million in August, the Pakistan Bureau of Statistics said on Thursday.

The exports contracted following six consecutive months of increase driven by a surge in information technology. The services export posted a negative growth of 2.08pc on a month-on-month basis.

In rupee terms, exports also recorded a negative growth of 11.37pc to Rs172.62 million compared to Rs194.77m in August 2023.

In the first two months (July-August), the export of services recorded a paltry growth of 0.13pc to $1.25bn against $1.25bn in the corresponding period last year.

In FY24, Pakistan’s export of services recorded a paltry growth of 2.77pc to $7.80bn from $7.59bn in the preceding year.

At the same time, the import of services increased by 2.03pc to $900.98m in August from $883.05m over the corresponding month of last year. The import of services declined by 0.45pc to $1.73bn in July-August FY25. Transport and travel services mainly contribute to the increase in the import of services. The surge in transport payments is attributed to increased fares for air passengers. A hike in sea freight despite declining merchandise imports reflects an increase in shipping rates in the wake of the Red Sea attacks and associated higher insurance premiums.

The service trade deficit decelerated by 1.95pc to $471.71m in July-August FY25 compared to $481.09m in the corresponding month last year.

In August, the trade deficit in services increased by 27.76pc to $281.25m against $220.14m over the corresponding month last year.

Published in Dawn, October 4th, 2024