Pakistan’s services exports grew by 4% during the first four months (July-October) of the current fiscal year to $2.259 billion compared to $2.173 billion during the same months of last year, according to the Ministry of Commerce. Exports of IT, business services, transport, government goods and services, and travel sectors remained major contributors among the services exports during Q1. According to data available with WealthPK, IT sector has the major contribution among services exports, with an export volume of $854 million during July-October 2022 against $830 million during the same period of 2021, with an increase of 2.89%. Business services exports were recorded at $516 million during the period under review against $528 million in the corresponding period of last year, with a decline of 2.27%.
Exports of government goods and services were recorded at $328 million during the period under review against $309 million during the same period of last year, with an addition of 6.14%. With a slight increase, exports of the transport sector were recorded at $331 million during July-October FY23 compared to $329 million during the same period of FY22, data shows. Exports volume of insurance and pension services remained at $20 million during the period under review against $13 million during the same months of 2021-22, registering a growth of 53.84%. Exports of the travel sector, financial services and construction sector were recorded at $158 million, $28 million and $15 million, respectively, during July-October.
On the other hand, Pakistan’s imports of services decreased by 11.82% to $3.071 billion during the first four months of the current fiscal year compared to $3.483 billion during the same months of last fiscal year. Pakistan’s trade deficit in services was recorded at $812 million during the period under review against deficit of $1.31 billion during the same period of last fiscal year, with a decrease of 38%. In a month-wise comparison, a marginal growth of 1.08% was observed in services exports during October. Services exports in October 2022 were registered at $559 million against $553 million during the same month last year.
IT exports posted an increase of 13.33% in October and export volume rose to $221 million as compared to $195 million during the corresponding month of last year. Imports of services were recorded at $730 million in October 2022 compared to $986 million during the same month of last year, with a decrease of 26%. Pakistan recorded a $171 million deficit in its trade in services during October. According to the State Bank of Pakistan (SBP), the country’s total services exports were recorded at $6.957 billion during the last fiscal year, up by 17% against $5.945 billion during the preceding year. Services imports remained at $12.087 billion in the previous fiscal year. The Ministry of Commerce has projected services exports worth $7.937 billion for 2022-23, while imports are projected to be around $14 billion.
Credit : Independent News Pakistan-WealthPk