Service exports plunged 53 per cent to $327.2 million in July from $701.2m in the same month of the last year, the Pakistan Bureau of Statistics said on Tuesday.
Exports of services during the entire previous fiscal year stood at $5.46 billion, down nearly 7pc from $5.88bn in 2014-15.
Imports of services dropped to $617.5m in July from $649.7m a year ago, a decline of 5pc. The imports fell 11pc to $7.87bn in the preceding fiscal year from $8.843bn a year ago.
The services whose imports decreased were transportation, travel, communications, insurance services, financial services, computer and information services, and other business services during the month under review.
As a result of steep fall in exports, the trade deficit in services widened by 464pc to $290.35m in July from $51.49m a year earlier.
The services sector has emerged as a 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.
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. The country’s share in global trade in services stands at a mere 0.06pc.