Service sector trade deficit shrinks 42.64% MoM in Nov

December 17, 2024 (MLN): The service sector of Pakistan posed a trade deficit of $152 million in November, reflecting a shrink of 42.64% compared to the negative net balance of 265m in the preceding month.

A yearly basis comparison shows that the country's deficit inched down by 4.4%.

Details made available by SBP further revealed that the exports of services in November went up by 6.62% to $676m compared to $634m in November 2023.

Similarly, on a month-wise basis, exports inched down by 1.74% compared to the figures for October 2024.

Cumulatively in 5MFY25, services exports climbed by 7.65% YoY to $3.27bn compared to exports of $3.03bn in 5MFY24.

Amongst the total exports in the review month, Telecommunications, Computer, and Information Services made the largest contribution with an amount of $324m in November, witnessing an increase of 25% compared to exports in SPLY.

Meanwhile, Other Business Services held the second position, bringing $124m in November into the country.

In terms of growth, receipts from the exports of this section went down by 12% MoM and 9.58 YoY compared to $141m in October and $137m in the same period last year.

Furthermore, the export of transport and travel services contributed an amount of $74m and $69m, respectively in the review period.

The imports of services during the year amounted to $828m, down by 13.11% compared to imports worth $953m in October 2024.

On a yearly basis, imports have increased compared to $793m recorded in the previous month.

Going forward, the imports during 5MFY25, stood at $4.42bn, up by 2.81% compared with the number during 5MFY24.

Amongst the total imports, the largest expenditure was incurred on Transport for an amount of $370m, witnessing an increase of 6% YoY, while going down by 2.63% MoM.

The Travel services cost the country around $188m, recording an increase of 8.6% YoY whereas on monthly basis it dropped by 11.32% MoM.

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