Services exports up 6pc to $2.7bln in first half

KARACHI: Pakistan’s services exports rose six percent to $2.7 billion in the first half of the current fiscal year of 2019/20 as gung-ho information and communication technology sector offset the otherwise subdued performance of the key economic sector, latest official data revealed.

Pakistan Bureau of Statistics (PBS) data showed that exports of telecommunication, computer and information services earned the country $652.7 million in the July-December period of 2019, up around 22 percent over the corresponding period a year earlier.

Export revenue from telecommunication services, mainly call centres, increased around 12 percent, while exports of hardware, software, maintenance and repairs services were also seen growing in the first half.

Services account for more than 60 percent of the country’s economy and its contribution to overall exports is imperative to increase foreign exchange revenue in the country.

IT sector is one of the catalysts in driving remittances that have depicted growth over the last couple of months. A major portion of foreign income of freelancers is covered under the remittance head.

PBS data showed that exports of research and development services, including auditing, accounting and public relations earned the country $701.8 million in the July-December period, showing a little increase over $694.9 million in the corresponding period a year earlier.

Embassies and consulates fetched $598.9 million in exports revenue from providing various services abroad. The export revenue, however, declined eight percent from $651.1 million in the corresponding period a year ago.

Exports from transport services, including freight tariffs, fell 2.77 percent to $389.1 million. Export revenue from travel services, education-related expenditures, surged

29.5 percent to $264.3 million in the first half of the current fiscal year.

In December, exports of services amounted to $526.7 million. That was compared to $416.9 million in November, showing a growth of 26 percent. Services export improved 10.4 percent in December 2019 over the corresponding month a year ago.

PBS data further showed that imports of services fell around five percent to $4.5 billion in the July-December period. Imports from transport services decreased 7.2 percent to $1.7 billion.

This decline in imports of services was due to the government’s measures to restrict foreign exchange flight in a bid to contain current account deficit.

Imports of travel services increased around six percent to $774.9 million. The country spent $1.3 billion on imports of research and development and other services during the period under review, up around 11 percent year-on-year.