Services export witnesses growth of 33.86% in July-Jan 2009

[Naveed Yaseen]

KARACHI: The services trade deficit narrowed down by almost 38 percent in the first seven months of current fiscal year over the same period of previous year. The services deficit came to $2.470 billion in the period under review against $3.967 billion in the corresponding period of last fiscal, Federal Board of Revenue (FBR) reported Monday. Services export registered 33.86 percent growth to $2.161 billion in July-January 2009 period over $ 1.614 billion in the same period 2007-08. The imports of services decreased by 17.02 percent to $4.632 billion in the said period against $5.582 billion in the last fiscal. In month of January current fiscal, the service trade deficit reduced even greater by 75.58 percent to $164.075 million against $671.805 million in the same month of previous year. The growth in export of services during this particular month was 40 percent while the imports decreased by 46.71 percent in the same month of last year. The service sector comprises government services, travel services, transportation services, financial services, communication services, construction services, computer and information services, royalties and licenses. Despite having enormous potential, the growth and development of services sector in Pakistan has been quite negligible. It is perceived as supplement to the exports in the goods sector. Lack of knowledge about the international regime on services export, capacity constraints, inadequate networking, poor marketing and politico administrative environment are the major factors for underperformance in this very important area of the economy. Government is currently working on the project to boost the export and for the purpose a special cell has been created in Trade Development Authority of Pakistan (TDAP). TDAP initially identified five high potential sectors including construction and architecture, health and medical, legal and accountancy, information technology and financial services including banking, insurance and financial management. The world market services valued more than $3 trillion in 1998 and believed to reach 50 percent of the world trade by 2020. tanveer ahmed

http://www.dailytimes.com.pk/default.asp...2009_pg5_2