ISLAMABAD: Exports of services grew 6.39 per cent in the first seven months of the current fiscal year mainly driven by information technology.

The growth was achieved at a time when the country`s merchandise exports continued to shrink for the sixth consecutive month in February, according to the latest data compiled by the Pakistan Bureau of Statistics.

In absolute terms, the value of export of services reached $4.19 billion in July-January from $3.94bn in the corresponding months of last year.

In January, the export of services increased by 17.31pc to $601.87m from $513.07m in the same month last year.

The PMLN-led coalition government has fixed services and commodities export targets at $10bn and $35bn, respectively, for 2022-23. The highest-ever growth in IT-related services pushed up the overall export figure.

The services sector has emerged as the main economic growth driver by contributing 61pc to GDP in 2020-21 from 56pc in 2005-06. Exports also include finance and insurance, transport and storage, wholesale and retail trade, public administration and defence sectors.

Meanwhile, the import of services posted a negative growth of 32.67pc to $4.49bn in July-January against $6.68bn in the corresponding period last year. Imports of services in January fell by 47.38pc to $584.10m this year from $1.11bn over the last year.

The import of services rose 43.52pc to $12.143bn in 2021-22 against $8.461bn in the preceding year.

The trade deficit in services declined by 88.97pc to $301.74m in July-January against $2.73bn over the corresponding months of last year.

In January, the trade deficit in services narrowed to $17.77m from $596.97m in the preceding month.

The trade deficit in services had declined by 105.73pc to $5.175bn in FY22 against $2.515bn in FY21.