Exports of services increase to $387mln in May

KARACHI: The country’s services export rose 7.19 percent year-on-year (YoY) and increased 4.34 percent month-on-month in May to $387.04 million as transportation, telecommunication and government services remained the key revenue earners, official data showed. 

Pakistan Bureau of Statistics (PBS) statistics showed that services sector, which accounted for almost 60 percent of GDP, earned the country $370.95 million in April and $361.07 million in May 2016. 

The government earned $84.090 million in export revenue from telecommunication, computer and information services in May, up 11.99 percent over April and 13.76 percent over May 2016. 

In May, transport services, including freight transportation and passenger travelling via sea, air, road and rail modes fetched $83.960 million, up 2.74 percent over April.

Export revenue from transport services, however, fell 13.70 percent in May over the same month a year earlier.  

Government services from embassies and consulates and military units and agencies raised $68.850 million in export revenue in May, down 9.25 percent MoM and up 25.48 percent YoY. 

PBS data further showed that imports of services in May also surged 15.88 percent MoM and 4.50 YoY to $828.41 million. 

In May, trade deficit in services widened 28.34 percent MoM, but it marginally increased 2.24 percent YoY to $441.37 million. 

Transport services had the largest import bill of $325.741 million in May, up 8.54 percent over April and 8.20 percent over May 2016. 

In May, goods and services rendered by border, seasonal and other short-term workers under the head of travel had the second highest import bill of $195.010 million, up 24.91 percent MoM and 24.84 percent YoY. 

Fees of business services, including auditing, consulting, bookkeeping and technical studies, remained flat at $129.960 million in May over April as well as May 2016. 

Trade deficit in services widened 3.85 percent to $2.778 billion in July-May 2016/17 as exports of services remained flat at $5.085 billion, while imports of services rose 1.95 percent to $7.863 billion in the first 11 months of the past fiscal year. 

Government services emerged as the major revenue earner with $1.692 billion in July-May, down 7.86 percent over the same period a year earlier.

Exports of business services, including auditing, consulting and public relation management, amounted to $1.037 billion in July-May, depicting a 11.29 percent rise over the corresponding period a year ago. 

Export of transport services fell 12.82 percent to $904.121 million in the first 11 months. 

PBS data further showed that imports of transport services soared 6.58 percent to $3.157 billion in July-May.

Travel head cost the country $1.583 billion during the period, down 6.10 percent over the corresponding period a year ago. Import of business services remained flat at $1.492 billion in July-May.