ISLAMABAD: The export of services surged by 10.38 per cent year-on-year to $526.78 million in December, the Pakistan Bureau of Statistics reported on Monday.

The services exports revived after shrinking over the past few months.

However, the export of commodities has been on decline for the last couple of months owing to a drop in production of goods and non-availability of surplus.

Between July and December, exports of services were also up marginally by 6.11pc to $2.738 billion, as against $2.580bn over the corresponding months last year.

In 2018-19, export proceeds of services were recorded at $5.37bn in FY19, from $5.28bn over the preceding year, reflecting a paltry growth.

The services sector has emerged as the main driver of economic growth with its share in GDP increasing from 56pc in 2005-06 to nearly 59pc in 2017-18.

Its major sub-sectors are finance and insurance, transport and storage, wholesale and retail trade, public administration and defense.

Meanwhile, the import of services fell to $4.53bn in July-December FY20, from $4.75bn in same months last year, reflecting a decline of 4.67pc.

In December 2019, import of services fell by 16.65pc to $766.01m on a yearly basis.

With the rising exports and decline in imports, the trade deficitinservicesalsofellby17.46pcto$1.79bnin1HFY20 as against $2.17bn over the same period last year.