Pakistan's service sector trade deficit shrinks by 52.27% MoM in February

March 19 2024 (MLN): The service sector of Pakistan posed a trade deficit of $158 million in February, reflecting a decline of 52.27% MoM, as compared to a deficit of $331m 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 deficit of $57m in trade of services in the Same Period Last Year (SPLY).

Details made available by SBP further revealed that the exports of services in February went up by 6.09% YoY to $627m compared to $591m in February 2023.

Conversely, on a month-wise basis, exports dropped by 8.06% MoM compared to the figures for January 2023.

Cumulatively in 8MFY24, services exports dropped by 1.36% YoY to $5.08bn compared to exports of $5.15bn in 8MFY23.

Amongst the total exports in the review month, Telecommunications, Computer, and Information Services made the largest contribution with an amount of $257m in February, witnessing an increase of 31.79% YoY compared to exports in SPLY.

Meanwhile, Other Business Services held the second position, bringing $122m in February into the country.

In terms of growth, receipts from the exports of this section went up by 7.02% YoY compared to $114m in the same period last year.

On a sequential basis, other business services dropped 19.21% MoM compared to exports of $265m in January 2023.

Furthermore, the export of transport and travel services contributed an amount of $63m and $61m, respectively in the review period.

The imports of services during the year amounted to $785m, which have increased by 21.14% YoY compared to imports worth $648m in SPLY.

On a monthly basis, imports have decreased by 22.51% MoM compared to $1.013bn recorded in the previous month.

Amongst the total imports, the largest expenditure was incurred on Transport for an amount of $417m during February, witnessing a growth of 35.83% YoY.

However, the country was able to reduce its transport imports by 6.71% MoM as in the previous month, the imports were recorded at $447m.

The Travel services cost the country around $159m, recording an increase of 35.9% YoY, while dropping by 37.65% MoM.

Going forward, the imports during 8MFY24, stood at $6.971bn, up by 28.19% YoY compared with the number during 8MFY23.

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