Pakistan records a trade deficit in services of $317m in January

February 19, 2024 (MLN): The service sector of Pakistan posed a trade deficit of $317 million in January, reflecting an increase of 2.48x MoM, as compared to a deficit of $128m recorded in the previous month, the latest data released by the State Bank of Pakistan (SBP) showed.

Comparison on a yearly basis shows that the country reported a surplus of $38m in trade of services in the Same Period Last Year (SPLY).

Details made available by SBP further revealed that the exports of services in January went down by 1.45% YoY to $678m compared to $688m in January 2023.

Similarly, on a month-wise basis, exports dropped by 7.25% MoM compared to the figures for December 2023.

Cumulatively in 7MFY24, services exports dropped by 2.41% YoY to $4.56bn compared to exports of $4.45m in 7MFY23.

Amongst the total exports in the review month, Telecommunications, Computer, and Information Services made the largest contribution with an amount of $265m in January, witnessing an increase of 39.47% YoY compared to exports in SPLY.

Meanwhile, Other Business Services held the second position, bringing $150m in January into the country.

In terms of growth, receipts from the exports of this section went up by 10.29% YoY compared to $136m in the same period last year.

On a sequential basis, other business services remain unchanged compared to exports of $150m in December 2023.

Furthermore, the export of transport and travel services contributed an amount of $65m and $73m, respectively in the review period.

The imports of services during the year amounted to $995m, which rose by 53.08% YoY compared to imports worth $650m in SPLY.

On a monthly basis, imports have increased compared to $859m recorded in the previous month.

Going forward, the imports during 7MFY24, stood at $4.79bn, up by 28.77% YoY compared with the number during 7MFY23.

Amongst the total imports, the largest expenditure was incurred on Transport for an amount of $435m during January, witnessing a growth of 35.09% YoY and 8.48% MoM.

The Travel services cost the country around $255m, recording an increase of 73.47% YoY, while going up by 82.14% MoM.

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