Pakistan's services sector exports have recorded a third consecutive monthly decline on an annual basis, as reported by the Pakistan Bureau of Statistics. According to the latest data, services exports fell by 7.25% to $677.9 million in January, compared to $739.09 million in the same month last year. However, there is a silver lining as exports of goods witnessed an uptick in December and January following a prolonged decline in the current fiscal year. During the first seven months of fiscal year 2024 (July to January), services exports reached $4.044 billion, marking a slight decrease compared to $4.055 billion during the same period last year. Despite the decline in dollar terms, there has been a notable improvement of 24.23% in rupee terms, with exports reaching Rs. 1.27 trillion.

On the flip side, services imports surged by 53% to $99.5 million in January, up from $64.99 million in January last year. Total services imports reached $1.016 billion during the first seven months of the fiscal year, compared to $4.079 billion during the same period last year. The widening trade deficit in services is a cause for concern, expanding by 641.56% to $1.072 billion between July and January, compared to $231.9 million during the same period last year. The latest figures highlight the challenges facing Pakistan's services sector, underscoring the need for strategic measures to boost exports and address the growing trade deficit.

Credit: Independent News Pakistan (INP)