Service sector trade deficit clocks in at $226m

October 21, 2024 (MLN): The service sector of Pakistan posed a trade deficit of $226 million in September, reflecting a decline of 19.86% as compared to a deficit of $282m 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 $358m in trade of services in the Same Period Last Year (SPLY).

Details made available by SBP further revealed that the exports of services in September went up by 17.11% to $657m compared to $561m in September 2023.

Similarly, on a month-wise basis, exports rose by 6.48% compared to the figures for August 2024.

Cumulatively in 3MFY25, services exports climbed by 5.89% to $1.907bn compared to exports of $1.801bn in 3MFY24.

Amongst the total exports in the review month, Telecommunications, Computer, and Information Services made the largest contribution with an amount of $292m in September, witnessing an increase of 41.75% compared to exports in SPLY.

Meanwhile, Other Business Services held the second position, bringing $129m in September into the country.

In terms of growth, receipts from the exports of this section went up by 19.44% compared to $108m in the same period last year.

On a sequential basis, other business services surged by 0.78% compared to exports of $128m in August 2023.

Furthermore, the export of transport and travel services contributed an amount of $76m and $51m, respectively in the review period.

The imports of services during the year amounted to $883m, which rose by 3.92% compared to imports worth $919m in SPLY.

On a monthly basis, imports have decreased compared to $899m recorded in the previous month.

Going forward, the imports during 3MFY25, stood at $2.606bn, down by 3.34% compared with the number during 3MFY24.

Amongst the total imports, the largest expenditure was incurred on Transport for an amount of $361m, witnessing a decline of 20.66% YoY and 1.37% MoM.

The Travel services cost the country around $199m, recording an increase of 21.34% YoY and 9.94% MoM.

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