June 25, 2021 (MLN): Pakistan’s trade deficit in services surged by 3.35x YoY to $87 million during the month of May 2021 from $26mn in the same month a year ago.
According to the figures published by the State Bank of Pakistan, on a sequential basis, the country’s trade deficit in services increased by 53% MoM.
This brings the total deficit for 11MFY21 to $1.51 billion, depicting a fall of 51% 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 $496mn, i.e., up by 37% YoY, while declined by 4.25% MoM. Amongst the total exports, Telecommunications, Computer and Information Services made the largest contribution with an amount of $200mn, showing an improvement of 59% YoY and 2.04% MoM in the month of May 21.
This is followed by Other Business Services that brought $119mn into the country. Receipts from the exports of said services swelled by 35.25% YoY while down 8% MoM during May 21. Moreover, the export of Transport and Travel Services contributed an amount of $47mn and $33mn, marking a growth of 9.3% and 65% YoY, respectively.
On the other hand, the imports of services during the month amounted to $583mn, showing an increase of 51% YoY and 1.39% MoM.
Amongst the total imports, the largest expenditure was incurred on Transport services for an amount of $268mn i.e., up by 90% YoY, while compared to previous month it remained flat. This was followed by Other business services which cost the country around $96mn i.e., lower by 24% MoM while up by 11.63% YoY in May 2021.
