Service sector trade deficit shrinks by 20.4% MoM in November

December 18, 2023 (MLN): The service sector of Pakistan posed a trade deficit of $199 million in November, reflecting a decline of 20.40% MoM as compared to a deficit of $250m 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 country was under a surplus of $74m recorded in November 2022.

Details made available by SBP revealed that the exports of services in November decreased by 15.85% YoY to $632m compared to $751m in November 2022. On the other hand, month-wise, exports rose by 6.40% MoM compared to figures for October 2023.

Cumulatively in 5MFY24, services exports declined by 3.33% YoY to $2.99 billion compared to exports of $3.09bn in 5MFY23.

Amongst the total exports, telecommunications, computers, and information services made the largest contribution with an amount of $1.152bn in 5MFY24, witnessing an increase of 5.88% YoY compared to 5MFY23.

During November, these services contributed $259m, up by 11.16% YoY and 8.82% MoM.

During the review month, other business services held the second position, bringing $137m into the country.

In terms of growth, receipts from the exports of this section went down by 9.27% YoY compared to $151m in the same period last year.

On a monthly basis, other business services soared by 9.6% MoM compared to exports of $125m in October 2023.

Furthermore, the export of transport and travel services contributed an amount of $65m and $56m, respectively in the review period.

The imports of services during the year amounted to $831m, which rose by 22.27% YoY. While they fell by 1.54% MoM compared to imports worth $844m in October.

The imports during 5MFY24, stood at $4.11bn, up by 20.67% YoY compared with the number during 5MFY23.

Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $420m, witnessing an upside of 25% YoY.

The travel services cost the country around $167m, recording an increase of 16.78% YoY and unchanged compared to October.

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