ISLAMABAD: Pakistan`s exports of services grew by about 54 per cent in the first two months of the current fiscal from what it was a year ago, according to the latest data released by the Pakistan Bureau of Statistics.

In absolute terms, the value of exports reached $1.008 billion in July-August 2021 from $799.94m over the corresponding months of last financial year.Services exports posted a growth of 53.64pc in August to $531.29m against $345.81m over the corresponding month of last year. On a month-on-month basis, exports increased by11.38pc.

The export of services went up by 9.19pc year-on-year to $5.937bn in FY21 compared to $5.437bn during the same period last year.

The growth in the export of services are mainly led by the highestever export of IT services. Services exports also include finance and insurance, transport and storage, wholesale and retail trade, public administration and defence sectors.

The commerce ministry has fixed a target of $7.5bn for services exports for 2021-22.The services sector has emerged as the main driver of economic growth as its share in the GDP increased from 56pc in 2005-06 to nearly 61pc in 2020-21.

On the other hand, services imports increased by 31.42pc to $1.627bn in July and August against $1.238bn over the corresponding months of last year.

In August, the imports of services went up by 88.89pc to $885.98m against $469.05m over the corresponding month of last year. On a monthly basis, the imports of services grew by 19.55pc.

The imports of services fell by 10.75pc to $7.812bn in July-June FY21 from $8.753bn over the cor-responding months last year.

The trade deficit has increased by 41.24pc to $618.76m in July and August against $438.10m over the corresponding months of last year.

In August, the trade deficit in services went up by 187.8pc to $354.69m from $123.24m over the corresponding month of last year.

The trade deficit declined by 43.45pc to $1.875bn in July-June FY21 against $3.315bn over the corresponding months last year.

In the budget 2021-22, the government has announced several measures to promote export of services, especially information technology. The incentives offered to exporters are related to tariff and non-tariff services.