Service exports rose 90pc in February

ISLAMABAD: Pakistan’s exports of services witnessed growth of 90 per cent year-on-year to $668.33 million in February, the Pakistan Bureau of Statistics (PBS) reported on Thursday.

The increase will help the government control the widening current account deficit in 2016-17.

In the first eight months of the current fiscal year, exports of services recorded negative growth. They fell 2.98pc to $3.52 billion in July-Feb. The annual drop was 7.14pc to $5.46bn in 2015-16.

The services sector has emerged as the main driver of economic growth. Its share increased from 56pc of the gross domestic product (GDP) in 2005-06 to 57.7pc in 2014-15.

Its major sub-sectors are finance and insurance, transport and storage, wholesale and retail trade, public administration and defence.

Pakistan has opened up its market to foreign service-providers, particularly in banking, insurance, telecommunications and retail areas.

The import of services went up 1.35pc to $5.51bn in July-Feb. On a monthly basis, the increase was 15.45pc in February when services imports amounted to $650.92m.

They fell 10.96pc to $7.87bn in 2015-16 against $8.843bn of services imports in the preceding year. Services whose imports declined included transportation, travel, communications, insurance, financial, computer/information and other business services.

The trade deficit in services increased 10.09pc to $1.98bn in July-Feb on a year-on-year basis.

 Courtesy by: https://dawn.com/

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