Service sector trade deficit shrinks by 8% MoM in February

March 17, 2025 (MLN): The service sector of Pakistan posed a trade deficit of $304 million in February, reflecting a decline of 8.43% MoM, as compared to a deficit of $332m 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 deficit of $88m in trade of services in the Same Period Last Year (SPLY).

Details made available by SBP further revealed that the exports of services in February went up by 4.73% YoY to $709m compared to $677m in February 2024.

Similarly, on a month wise basis, exports rose by 2.46% MoM compared to the figures for January 2025.

Cumulatively in 8MFY25, services exports climbed by 6% YoY to $5.459bn compared to exports of $5.15bn in 8MFY24.

Amongst the total exports in the review month, Telecommunications, Computer, and Information Services made the largest contribution with an amount of $305m in February, witnessing an increase of 18.68% YoY compared to exports in SPLY.

Meanwhile, Other Business Services held the second position, bringing $118m in February into the country.

In terms of growth, receipts from the exports of this section went down by 2.48% YoY compared to $121m in the same period last year.

On a sequential basis, other business services dropped by 20.27% MoM compared to exports of $148m in January 2025.

Furthermore, the export of transport and travel services contributed an amount of $91m and $69m, respectively in the review period.

The imports of services during the year amounted to $1.013bn, which rose by 32.42% YoY compared to imports worth $765m in SPLY.

On a monthly basis, imports have decreased compared to $1.024bn recorded in the previous month.

Going forward, the imports during 8MFY25, stood at $7.709bn, up by 11.95% YoY compared with the number during 8MFY24.

Amongst the total imports, the largest expenditure was incurred on Transport for an amount of $425m, witnessing a decline of 20.18% YoY and 6.19% MoM.

The Travel services cost the country around $304m, recording an increase of 2.99% YoY and 1.47% MoM.

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