Service exports grew for the second consecutive month in November, rising by nearly 27 per cent year-on-year to $400.8 million, the Pakistan Bureau of Statistics said on Wednesday.
However, in the first five months (July-November) of the current fiscal year, the exports fell 17.6pc year-on-year to $2.023bn. Service exports amounted to $5.46bn in the previous fiscal year, a year-on-year drop of 7pc.
The service sector has emerged as a key driver of economic growth, and its share increased from 56pc of the gross domestic product 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.
The import of services during the five-month period dropped to $3.422 billion from $3.452bn a year ago, a decline of 0.85pc. In November alone, the import of services rose 17.7pc year-on-year to $704.53m.
In the year 2015-16, the import of services fell 11pc to $7.874bn as against $8.843bn over the corresponding period of the last year.
The services whose imports decreased in July-November included transportation, travel, communications, insurance services, financial services, computer and information services and other business services. The trade deficit in services increased by 40.4pc to $1.399bn in July-Nov 2016 from $0.996bn a year earlier.
Pakistan’s share in global trade in services stood at 0.06pc last year, while its share in the domestic GDP posted a substantial increase.