Service sector trade deficit widens by 37.96% in August

September 15, 2023 (MLN): The service sector of Pakistan posed a trade deficit of $189 million in August, reflecting a significant rise of 37.96% YoY as compared to a deficit of $137m in the same period last year, the latest data released by the State Bank of Pakistan (SBP) showed.

Conversely, on a monthly basis, the deficit fell by 31% MoM compared to a deficit of $274m in July 2023.

Details made available by SBP revealed that the exports of services in August increased by 2.39% YoY to $600m compared to $586m in August 2022. Similarly, on a monthly basis, exports rose by 12.15%.

Cumulatively in 2MFY24, exports of services marked an increase of 2.07% to $1.14 billion compared to exports of $1.11bn in 2MFY23.

Amongst the total exports, telecommunications, computers, and information services made the largest contribution with an amount of $449m in 2MFY24, witnessing an increase of 5.15% YoY compared to 2MFY23. Moreover, on a monthly basis, exports climbed by 9.81% as compared to $214m in July 2023.

Other business services brought $154m into the country. In terms of growth, receipts from the exports of this section moved up by 1.99% YoY compared to $151m in the same period last year.

On a monthly basis, other business services surged by 40% MoM compared to exports of $110m in July 2023.

Furthermore, the export of transport and travel services contributed an amount of $68m and $49m, respectively in the review period.

On the other hand, the imports of services during the year amounted to $789m, which rose by 9.13% YoY, While on a monthly basis, imports went down by 2.47% MoM.

Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $351m, witnessing a decline of 19.12% YoY and 1.13% MoM.

On the other hand, the travel services cost the country around $210m, recording a surge of 2.56x YoY compared to $82m in August 2022.

Copyright Mettis Link News