Services exports fall in August

Services exports shrank year-on-year by 6.51 per cent to $619.73 million in August, the Pakistan Bureau of Statistics said on Thursday. The exports contracted following six consecutive months of increase driven by a surge in information technology. The services export posted a negative growth of 2.08pc on a month-on-month basis. In rupee terms, exports also recorded a negative growth of 11.37pc to Rs172.62 million compared to Rs194.77m in August 2023. In the first two months (July-August), the export of services recorded a paltry growth of 0.13pc to $1.25bn against $1.25bn in the corresponding period last year. In FY24, Pakistan’s export of services recorded a paltry growth of 2.77pc to $7.80bn from $7.59bn in the preceding year. At the same time, the import of services increased by 2.03pc to $900.98m in August from $883.05m over the corresponding month of last year. The import of services declined by 0.45pc to $1.73bn in July-August FY25. Transport and travel services mainly contribute to the increase in the import of services. The surge in transport payments is attributed to increased fares for air passengers. A hike in sea freight despite declining merchandise imports reflects an increase in shipping rates in the wake of the Red Sea attacks and associated higher insurance premiums.