Getting Unexpected token import for v16.18.0 node

I have created simple JS app(using npm init) to achieve absolute path but facing an import issue.

My package.json is like,

  "name": "test-abs",
  "version": "1.0.0",
  "description": "",
  "main": "index.js",
  "type": "module",
  "scripts": {
    "dev": "nodemon src/index.js"
  },
  "keywords": [],
  "author": "",
  "license": "ISC",
  "dependencies": {
    "nodemon": "^2.0.22"
  },
  "devDependencies": {
    "basetag": "^2.1.0"
  }
}

I have index.js, test1.js in src folder

In /src/index.js,

import { app1 } from "$/src/test1.js";

app1();

In test1.js,

export const app1 = () => {
  console.log("app1");
};

When I start npm run dev server getting

(function (exports, require, module, __filename, __dirname) { import { app1 } from "$/src/test1.js";
                                                              ^^^^^^

SyntaxError: Unexpected token import
    at createScript (vm.js:80:10)
    at Object.runInThisContext (vm.js:139:10)
    at Module._compile (module.js:617:28)
    at Object.Module._extensions..js (module.js:664:10)
    at Module.load (module.js:566:32)
    at tryModuleLoad (module.js:506:12)
    at Function.Module._load (module.js:498:3)
    at Function.Module.runMain (module.js:694:10)
    at startup (bootstrap_node.js:204:16)
    at bootstrap_node.js:625:3

My node is v16.18.0

Please let me know why I am facing this issue and how to fix this.