Service sector trade deficit shrinks by 15.27% MoM in October

November 20, 2023 (MLN): The service sector of Pakistan posed a trade deficit of $172 million in October, reflecting a decline of 15.27% MoM as compared to a deficit of $203m recorded in the previous month, the latest data released by the State Bank of Pakistan (SBP) showed.

Conversely, on a year-on-year basis, the deficit rose by 2.15x YoY compared to a negative balance of $80m in October 2022.

Details made available by SBP revealed that the exports of services in October increased by 5.64% YoY to $656m compared to $621m in October 2022. Similarly, on a monthly basis, exports rose by 5.13% MoM compared to figures for September 2023.

Cumulatively in 4MFY24, services exports climbed by 3.34% YoY to $2.42 billion compared to exports of $2.34bn in 4MFY23.

Amongst the total exports, telecommunications, computers, and information services made the largest contribution with an amount of $893m in 4MFY24, witnessing an increase of 4.44% YoY compared to 4MFY23.

During October, these services contributed $238m, up by 7.69% YoY and 15.53% MoM.

During the review month, other business services held the second position, bringing $126m into the country.

In terms of growth, receipts from the exports of this section went down by 3.82% YoY compared to $131m in the same period last year.

On a monthly basis, other business services soared by 16.67% MoM compared to exports of $108m in September 2023.

Furthermore, the export of transport and travel services contributed an amount of $119m and $68m, respectively in the review period.

The imports of services during the year amounted to $828m, which rose by 18.12% YoY and 0.12% MoM.

Likewise, the imports during 4MFY24, stood at $3.26bn, up by 19.57% YoY compared with the number during 4MFY23.

Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $423m, witnessing an upside of 28.57% YoY and 6.28% MoM.

The travel services cost the country around $169m, recording an increase of 1.81% YoY and 3.68% MoM.

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