ISLAMABAD: As the export of information & communication technology (ICT)services increased 40pc during the first half (July-Dec) of the currentfinancial year (2020-21), the Ministry of Commerce foresees the exports tocross $2 billion this year.
According to officials at the Ministry of Commerce, the most significantincrease in services’ exports was witnessed in ‘telecom & ICT’ services’,which surged 40pc to $958 million in 1HFY21 as compared to $684 million inthe same period of FY20.
A consultative meeting was held on Friday at the MoC to discuss Pakistan’s‘global trade in services’ during the first half of FY21. The meeting waschaired by Advisor to Prime Minister on Commerce and Investment Abdul RazakDawood.
It was noted that ICT would soon become an important sector in Pakistan’seconomy, as total exports are likely cross the $2-billion mark this fiscalyear.
The advisor was informed that during the first half of FY21, Pakistan’stotal services’ exports stood at $2.844 billion as compared to $2.835billion in the same period of last year. On the other hand, the services’imports declined 15.7pc to $3.821 billion in 1HFY21 as compared to lastyear.
Meanwhile, during the period under review, the export of insurance &pension services grew 21pc, financial services 26pc, while that of otherbusiness services (consultancies) inched up 2pc.
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However, travel and transport exports declined 28pc and 18pc, respectively,mainly due to impact of Covid-19 outbreak. According to MoC officials,these sectors are likely to improve once the pandemic subsides.
Dawood noted with satisfaction that that the country’s services’ exportshave finally turned its trajectory by showing a positive trend.
“Services have a central place in both domestic and international economiesas they account for the bulk of global Foreign Direct Investment (FDI) andtrade,” the advisor stated. “They [services] connect countries to theinternational trading system by facilitating supply chains and e-commerce.”
The meeting was informed that due to a surge in exports and fall inimports, the trade balance in the services sector has improvedsignificantly during the first six months of FY21. The trade balance stoodat $-977 million during July-Dec 2020 as compared to $-1,697 million duringthe same period of last year, thereby showing an improvement of 42pc.
