Service sector trade deficit rises to $89m in March

April 22, 2024 (MLN): The service sector of Pakistan posed a trade deficit of $89 million in March, reflecting an increase of 2.28x YoY, as compared to a deficit of $39m recorded in the same period last year, the latest data released by the State Bank of Pakistan (SBP) showed.

Comparison on a monthly metric shows that the country reported a deficit of $79m in trade of services in the previous month.

Details made available by SBP further revealed that the exports of services in March went up by 6.76% YoY to $711m compared to $666m in March 2023.

Similarly, on a month-wise basis, exports rose by 13.04% MoM compared to the figures for February 2024.

Cumulatively in 9MFY24, services exports inched down by 0.09% YoY to $5.808bn compared to exports of $5.813bn in 9MFY23.

Amongst the total exports in the review month, Telecommunications, Computer, and Information Services made the largest contribution with an amount of $306m in March, witnessing an increase of 36% YoY compared to exports in SPLY.

Meanwhile, Other Business Services held the second position, bringing $147m in March into the country.

In terms of growth, receipts from the exports of this section went up by 14.84% YoY compared to $128m in the same period last year.

On a sequential basis, other business services surged by 21.49% MoM compared to exports of $121m in February 2023.

Furthermore, the export of transport and travel services contributed an amount of $65m and $60m, respectively in the review period.

The imports of services during the year amounted to $800m, which rose by 13.48% YoY compared to imports worth $705m in SPLY.

On a monthly basis, imports have increased compared to $708m recorded in the previous month.

Going forward, the imports during 9MFY24, stood at $7.463bn, up by 20.62% YoY compared with the number during 9MFY23.

Amongst the total imports, the largest expenditure was incurred on Transport for an amount of $330m, witnessing a decrease of 1.49% MoM, while rising 1.54% YoY.

The Travel services cost the country around $224m, recording a rise of 2.02x YoY and 35.76% MoM.

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