November 19, 2020 (MLN): Pakistan’s trade deficit in services stood at $239 million during October’20, signifying a whopping 185% increase when compared to last month.
During Jul-Oct FY21, the trade deficit in services improved by 38% to clock in at $785 million when compared to a deficit of $1.27 billion in Jul-Oct FY20 as imports of services plunged by 22% YoY and exports by 11% YoY during the period.
According to the latest figures published by the State Bank of Pakistan, the exports of services during October amounted to $404 million, which is around 25% and 12% lower as compared to the exports of the previous year and the previous month respectively.
Amongst the total exports, Telecommunications, Computer and Information Services made the largest contribution with an amount of $151 million i.e. higher by 23% as compared to last year, followed by other Business Services at $112 million, down by 1% YoY and Government Goods and Services at $54 million.
Other segments that contributed significantly to the exports include Travel services, which brought in nearly $40 million during October, as well as Transport services, whose contribution amounted to $28 million.
On the contrary, the imports of services during the month amounted to $43 million, depicting a decrease of 10% YoY while an increase of 18% MoM. Amongst the total imports, the largest expenditure was incurred on Other Business Services for an amount of $247 million, followed by the Transport group at $182 million.
Other major items imported during the month include Travel Services ($69 million), Telecommunications, Computer, and Information Services ($37 million), Intellectual Property Charges ($30 million), Government Goods and Services ($28 million) and Insurance and Pension Services ($24 million).
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