May 25, 2021 (MLN): Pakistan’s trade deficit in services narrowed by 65% YoY to $57million during the month of April 2021 from $162mn in the same month a year ago on an account of higher export services.
According to the figures published by the State Bank of Pakistan, on a sequential basis, the country’s trade deficit in services fell by 12% MoM.
This brings the total deficit for 10MFY21 to $1.42billion, which demonstrates a drop of 53% as compared to the same period of last year.
Details made available by SBP revealed that the exports of services during the month amounted to $525mn, i.e., up by 48% YoY, while declined by 7% MoM. Amongst the total exports, Telecommunications, Computer and Information Services made the largest contribution with an amount of $196mn, showing an improvement of 66% as opposed to the $118mn recorded in April’20. However, on a sequential basis, the exports of the same services went down by 8% MoM. This is followed by Other Business Services that brought $132mn into the country. Receipts from the exports of Other Business Services swelled by 29% YoY and 19% MoM during April’21.
Moreover, the export of Transport and Travel Services contributed an amount of $48mn and $42mn, marking a growth of 129% and 147% YoY, respectively.
On the contrary, the imports of services during the month amounted to $582mn, showing a decline of 7% MoM while it increased by 13% as compared to SPLY.
Amongst the total imports, the largest expenditure was incurred on Transport services for an amount of $269mn i.e., up by 55% YoY, while compared to previous month it remained unchanged. Next up was Other business services which cost the country around $126mn i.e., lower by 39% YoY and inched up by 29% MoM in April 2021.
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