ISLAMABAD: Service sector exports witnessed an increase of 23.58 per cent during the first two months of the current fiscal year over the same months last year, suggested data of Federal Bureau of Statistics (FBS) released on Tuesday.

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

The export of services reached $760 million in July-August as against $615 million over the corresponding months last year.

On monthly basis, export of services recorded a growth of 23.8 per cent as it reached $395 million in August this year as against $319 million over the same month last year.

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

Services sector contributes over 50 per cent to Pakistan’s 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.On the other hand, Pakistan has opened up its market for foreign services providers, particularly in the banking, insurance, telecommunications, retail and some other sectors, which were flooded by foreign services providers.

As a result of liberalisation of services sectors, import of services went up by 6.63 per cent to $1.190 billion in July-August this year as against $1.116 billion over the same months last year.

On monthly basis, imports of services went up by 4.14 per cent to $579 million in August this year as against $556 million over the corresponding month last year.

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

As a result of slight increase in volume of imports, the deficit in services trade was up by 14.17 per cent to $430 million in July-August 2011 as against $501 million over the corresponding months last year.