Service sector trade deficit shrinks by 31.42% MoM in December

January 17, 2024 (MLN): The service sector of Pakistan posed a trade deficit of $155 million in December, reflecting a decline of 31.42% MoM, as compared to a deficit of $226m recorded in the previous month, the latest data released by the State Bank of Pakistan (SBP) showed.

Comparison on a yearly basis shows that the country reported a surplus of $47 m in trade of services in the Same Period Last Year (SPLY).

Details made available by SBP further revealed that the exports of services in December went down by 6.91% YoY to $727m compared to $781m in December 2022.

Conversely, on a month-wise basis, exports rose by 15.21% MoM compared to the figures for November 2023.

Cumulatively in 6MFY24, services exports dropped by 2.69% YoY to $3.766bn compared to exports of $3.87bn in 6MFY23.

Amongst the total exports in the review month, Telecommunications, Computer, and Information Services made the largest contribution with an amount of $303m in December, witnessing an increase of 22.67% YoY compared to exports in SPLY.

Meanwhile, Other Business Services held the second position, bringing $150m in December into the country.

In terms of growth, receipts from the exports of this section went down by 2.6% YoY compared to $154m in the same period last year.

On a sequential basis, other business services surged by 10.29% MoM compared to exports of $136m in November 2023.

Furthermore, the export of transport and travel services contributed an amount of $58m and $65m, respectively in the review period.

The imports of services during the year amounted to $882m, which rose by 20.16% YoY compared to imports worth $734m in SPLY.

On a monthly basis, imports have increased compared to $857m recorded in the previous month.

Going forward, the imports during 6MFY24, stood at $5.196bn, up by 25.51% YoY compared with the number during 6MFY23.

Amongst the total imports, the largest expenditure was incurred on Transport for an amount of $426m, witnessing a decrease of 25.64% YoY, while by 0% MoM.

The Other Business Services services cost the country around $179m, recording a decrease of 2.6% YoY, while going up by 10.29% MoM.

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