ISLAMABAD: Pakistan’s export of services posted growth of over 23 per cent in the first quarter of the current financial year from a year ago, according to the latest data released by the Pakistan Bureau of Statistics.

In absolute terms, the value of export of services reached $1.572 billion between July and September 2021 from $1.275bn over the corresponding period of last year.

On a monthly basis, the growth in export of services was lower in September as it grew by 15.73pc to $550.91 million against $476.04m over the corresponding month of last year.

On a month-on-month basis, export of services went up by 1.25pc.

In FY 21, the export of services increased by 9.19pc year-on-year to $5.937bn in FY21 compared to $5.437bn during the same period of last year. The growth in the export of services is mainly led by the highest-ever export of IT services. Services export includes finance and insurance, transport and storage, wholesale and retail trade, public administration and defence sectors.

The commerce ministry has projected $7.5bn target of services exports for the year 2021-22.

The services sector has emerged as the main driver of economic growth as its share in the GDP rose from 56pc in 2005-06 to nearly 61pc in 2020-21.

On the other hand, services import reached $2.289bn between July and September 2021 against $1.809bn over the corresponding months of last year, reflecting an increase of 26.54pc.

The import of services posted a growth of 17pc to $668.09m in September 2021 against $571.04m over the corresponding month of last year. On a month-on-month basis, the import of services posted a negative growth of 24.09pc.

The import of services reached $7.812bn in July-June FY21 falling by 10.75pc from $8.753bn over the corresponding months of last year.

The trade deficit has increased by 34.53pc to $717.21m between July and September 2021 against $533.11m over the corresponding months of last year. In September, the trade deficit in services posted a growth of 23.35pc to $117.18m from $95m over the corresponding month of last year.

The trade deficit in services has declined by 43.45pc to $1.875bn in FY21 against $3.315bn over the corresponding months of last year.