Service sector trade deficit clocks in at $280m in August

September 18, 2024 (MLN): The service sector of Pakistan posed a trade deficit of $280 million in August, reflecting an increase of 46.6%, as compared to a deficit of $191m 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 $220m in trade of services in the Same Period Last Year (SPLY).

Details made available by SBP further revealed that the exports of services in August went down by 6.49% YoY to $620m compared to $663m in August 2023.

Similarly, on a month-wise basis, exports dropped by 2.05% compared to the figures for July 2024.

Cumulatively in 2MFY25, services exports climbed by 0.16% to $1.253bn compared to exports of $1.251bn in 2MFY24.

Amongst the total exports in the review month, Telecommunications, Computer, and Information Services made the largest contribution with an amount of $298m in August, witnessing an increase of 26.81% YoY compared to exports in SPLY.

Meanwhile, Other Business Services held the second position, bringing $127m in August into the country.

In terms of growth, receipts from the exports of this section went down by 18.59% YoY compared to $156m in the same period last year.

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

Furthermore, the export of transport and travel services contributed an amount of $69m and $52m, respectively in the review period.

The imports of services during the year amounted to $900m, which rose by 1.93% YoY compared to imports worth $883m in SPLY.

On a monthly basis, imports have increased compared to $824m recorded in the previous month.

Going forward, the imports during 2MFY25, stood at $1.724bn, down by 0.46% YoY compared with the number during 2MFY24.

Amongst the total imports, the largest expenditure was incurred on Transport for an amount of $372m, witnessing a decline of 16.96% YoY and 1.06% MoM.

The Travel services cost the country around $180m, recording a decline of 14.69% YoY and 0.55% MoM.

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