In the initial month of the current fiscal year, Pakistan's service exports showed a modest year-on-year growth of 2.17 percent, reaching $538 million.
This growth is noteworthy, especially considering that commodity exports witnessed a decline in July, as reported by the Pakistan Bureau of Statistics. When denominated in Pakistani rupees, service exports experienced a more substantial increase of 30.84 percent in July, totaling Rs. 151.182 billion, compared to Rs. 115.550 billion in the same month of the previous year.
For the full fiscal year 2023, service exports registered a 2.78 percent uptick, reaching from in the preceding year. Conversely, the of services saw a substantial surge, surging by 45.22 percent to $810.93 million in July from $558.43 million in the corresponding month of the previous year.
However, the import of services displayed a contrasting trend for the entire fiscal year 2023, declining by 38.04 percent to from in the previous fiscal year.
Furthermore, the trade deficit in services exhibited a stark contrast, increasing by a staggering 756.83 percent to $272.93 million in July from $31.85 million in the same month of the previous year. In sharp contrast, the trade deficit in services for fiscal year 2023 reduced significantly by 87.68 percent, dropping from to $719.45 million compared to the previous year.
The export of services encompasses a diverse range of sectors, including finance and insurance, transportation and storage, wholesale and retail trade, public administration, and military services.
Over the years, the services sector's contribution to Pakistan's GDP has been on an upward trajectory, increasing from 56 percent in 2005–2006 to 61 percent in the fiscal year 2020–2021. This underscores the growing significance of the services industry in the country's economic landscape.
The steady growth in Pakistan's service exports, despite challenges in other sectors like commodity exports, highlights the resilience and potential of the services industry.