ISLAMABAD, July 12: Pakistan’s export of services fell by over 15 per cent in the first 11 months (July-May) of 2011-12 from a year ago, data released by the Pakistan Bureau of Statistics showed on Thursday.

In absolute terms, the exports of services dipped to $4.524 billion in July-May period this year and fell by 15.07 per cent from $5.328 billion over the same period last year.

On monthly basis, the exports of services declined by 17.47 per cent to $339.22 million in May this year from $411 million over the same month last year.

The decline in export of services was mainly driven by sluggish growth in export of travel, construction, insurance, computer and information services, government services and businesses services.

Last year, export of services recorded a growth of 4.32 per cent as it reached to $5.455 billion in 2010-11 from $5.229 billion over the corresponding previous year.

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

As a result, import of services went up by 3.62 per cent to $7.142 billion in July-May period this year as against $6.893 billion over the same months last year.

Last year, services import bill reached to $7.590 billion in 2010-11 as against $6.919 billion over the last year, showing an increase of over nine per cent.

Services import which increased included transportation, travel, communication, insurance services, financial services, royalties and license, computer and information services and other businesses.

The drop in exports of services and surge in imports caused huge deficit in the trade in services.

The deficit in trade in services reached to $2.617 billion in July-May period this year as against $1.565 billion over the same period last year, showing an increase of 67.27 per cent.

The trade deficit will increase in the month of June because of decline in export proceeds and rising trends in imports. The services sector contributes over 50 per cent to GDP.

Major sub-sectors are finance and insurance, transport and storage, wholesale and retail trade, public administration and defence. Services contribution to GDP is gradually increasing.