Service sector trade deficit shrinks 39% YoY in July

August 19, 2024 (MLN): The service sector of Pakistan posed a trade deficit of $159 million in July, reflecting a decline of 39.08% YoY as compared to a deficit of $261m recorded in the same month last year, the latest data released by the State Bank of Pakistan (SBP) showed.

Likewise, on a month-on-month basis, the service sector deficit shrank 61.03% compared to the $408m negative balance reported in the previous month.

Details made available by SBP further revealed that the exports of services in July went up by 5.78% YoY to $622m compared to $588m in July 2023.

Conversely, on a month-wise basis, exports dropped by 2.35% MoM compared to the figures for June 2024.

Amongst the total exports in the review month, Telecommunications, Computer, and Information Services made the largest contribution with an amount of $286m in July, witnessing an increase of 33.64% YoY compared to exports in SPLY.

Meanwhile, Other Business Services held the second position, bringing $128m in July into the country.

In terms of growth, receipts from the exports of this section went up by 16.36% YoY compared to $110m in the same period last year.

On a sequential basis, other business services surged by 8.47% MoM compared to exports of $118m in June 2023.

Furthermore, the export of transport and travel services contributed an amount of $58m and $59m, respectively in the review period.

The imports of services during the year amounted to $781m, which dropped by 8.01% YoY compared to imports worth $849m in SPLY.

On a monthly basis, imports have decreased compared to $1.045bn recorded in the previous month.

Amongst the total imports, the largest expenditure was incurred on Transport for an amount of $340m, witnessing a decrease of 14.57% YoY, while going up by 4.62% MoM.

The Travel services cost the country around $181m, recording an increase of 16.77% YoY and 37.12% MoM.

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