Service sector exports record 23pc growth

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Service sector exports record 23pc growth

ISLAMABAD: Services sector exports recorded a robust growth of 23.31 per cent during the first month of the current fiscal year over the same month last year, suggested data of Federal Bureau of Statistics (FBS) released on Monday.

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

In absolute terms, export of services reached $365 million in July 2011 as against $296 million over the corresponding 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 previous year.

An official said that break-up of the data shows that export of transportation, travel, construction, insurance, computer and information services recorded a growth during the month under review.

However, export of government services, personal, cultural and recreation services, loyalties and licence fee, financial services, and communication services witnessed a negative growth in July over the same month last 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 service providers, particularly in banking, insurance, telecommunications, retail and some other sectors, which were flooded by foreign services providers.

As a result of liberalisation of service sector, import of services increased by 7.86 per cent to $604 million in July this year as against $560 million over the same month last year.

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

As a result of slight decrease in imports and surge in exports, the deficit in services trade decelerates by 9.47 per cent to $239 million in July 2011 as against $264 million over the corresponding month last year.

The services import, which increases includes – transportation, travel, communication, insurance, financial services, royalties and licence, computer and information services and other business services during the month under review over the last year.

Service sector exports record 23pc growth | Business | DAWN.COM