ISLAMABAD, March 12: The services sector exports declined by 29 per cent in the first seven months (July-January) of the current fiscal year to $1.621 billion against $2.283 billion over last year, Federal Bureau of Statistics (FBS) said on Wednesday.

The decline in export of services proceeds was the outcome of the steady decrease in export of services -- transportation, communication, construction, business and royalties and license fees.

On monthly basis, the decline in services exports was more worrisome as it declined by 54.91 per cent to $230.414 million in January 2008 against $511.014 million in the same month last year.

There are four ways or modes of supply of trade in services --mode-1 or cross border, mode-2 or consumption abroad, mode-3 or commercial presence and mode-4 or temporary movement (presence of natural person under the General Agreement on Trade in Services).

On the other hand, Pakistan has opened up its market for foreign services providers particularly in the banking, insurance, telecommunication, retail and some other sectors, which were flooded by foreign services providers.

This is clear from the fact, that import of services up by 14.11 per cent in the first seven months of the current fiscal year to $5.607 billion against $4.914 billion over the corresponding period of last year.

On monthly basis, the growth was even more than 34 per cent to $921.165 million in January 2008 against $682.778 million over the same month last year.

On the other hand, import of services which recorded growth includes -- communication, construction, computer, business services, and government services during the period under review. The services import which declines includes -- transportation, financial services, royalties and personal, culture services during the period this year over last year.