Pakistan’s trade deficit in services comes down by 43% during FY20

July 21, 2020 (MLN): Pakistan’s trade deficit in services stood at $2.835 billion during the Financial Year 2020, signifying a fall of 43%, as compared to last year.

Likewise, the deficit during the quarter Apr-Jun was recorded at $419 million, which is around 42% lower than the previous quarter.

According to the latest figures published by the State Bank of Pakistan, the exports of services during FY20 amounted to $5.45 billion, which is around 9% lower as compared to the exports of previous year.

Amongst the total exports, Telecommunications, Computer and Information Services made the largest contribution with an amount of $1.44 billion i.e. higher by 21% as compared to last year, followed by Government Goods and Services at $1.09 billion, i.e. 13% lower as compared to the last year.

Other segments that contributed significantly to the exports include Transport services, which brought in nearly $821 million during the year, as well as Travel services, whose contribution amounted to $489 million. The construction segment also roped in $177 million during the period under review.

On the contrary, the imports of services during the year amounted to $8.28 billion, which is about 24% lower as compared to the figures reported in the prior year.

Amongst the total imports, the largest expenditure was incurred on Transport group for an amount of $3.1 billion, i.e. around 15% lower than the cost incurred in previous year. Moreover, the expense incurred on the travel group amounted to $1.23 billion, i.e. 28% lower than the last year.  

While the export of ‘Other Business Services totaled $1.3 billion, the import of the same resulted in an expenditure of $2.5 billion.

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