Service sector trade deficit rises 26.7% in Oct

November 18, 2024 (MLN): The service sector of Pakistan posed a trade deficit of $261 million in October, reflecting an increase of 26.7% compared to the negative net balance of 206m in the same period last year.

A monthly basis comparison shows that the country's deficit inched up by 1.16%.

Details made available by SBP further revealed that the exports of services in October went up by 13.32% to $689m compared to $608m in October 2023.

Similarly, on a month-wise basis, exports rose by 4.08% compared to the figures for September 2024.

Cumulatively in 4MFY25, services exports climbed by 7.97% YoY to $2.601bn compared to exports of $2.409bn in 4MFY24.

Amongst the total exports in the review month, Telecommunications, Computer, and Information Services made the largest contribution with an amount of $330m in October, witnessing an increase of 38.66% compared to exports in SPLY.

Meanwhile, Other Business Services held the second position, bringing $141m in October into the country.

In terms of growth, receipts from the exports of this section went up by 12.8% compared to $125m in the same period last year.

On a sequential basis, other business services surged by 10.16% compared to exports of $128m in September 2023.

Furthermore, the export of transport and travel services contributed an amount of $71m and $64m, respectively in the review period.

The imports of services during the year amounted to $950m, which rose by 16.71% compared to imports worth $814m in SPLY.

On a monthly basis, imports have increased compared to $920m recorded in the previous month.

Going forward, the imports during 4MFY25, stood at $3.593bn, up by 2.36% compared with the number during 4MFY24.

Amongst the total imports, the largest expenditure was incurred on Transport for an amount of $380m, witnessing an increase of 7.34% YoY, while going down by 0.52% MoM.

The Travel services cost the country around $212m, recording an increase of 22.54% YoY and 6.53% MoM.

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