Service sector trade deficit widens by 75.61% YoY in September

October 20, 2023 (MLN): The service sector of Pakistan posed a trade deficit of $216 million in September, reflecting a significant rise of 75.61% YoY as compared to a deficit of $123m recorded in the same period last year, the latest data released by the State Bank of Pakistan (SBP) showed.

Similarly, on a monthly basis, the deficit rose by 9.09% MoM compared to a deficit of $198m in August 2023.

Details made available by SBP revealed that the exports of services in August increased by 1.06% YoY to $571m compared to $565m in September 2022. However, on a monthly basis, exports fell by 5% compared to figures for August 2023.

Cumulatively in 3MFY24, services exports inched down by 0.58% to $1.707 billion compared to exports of $1.717bn in 3MFY23.

Amongst the total exports, telecommunications, computers, and information services made the largest contribution with an amount of $655m in 3MFY24, witnessing an increase of 3.31% YoY compared to 3MFY23.

With respect to the number of $206 in September, the exports of these services went down by 0.48% YoY and 12.34% MoM.

During the period under review, other business services brought $106m into the country. In terms of growth, receipts from the exports of this section went down by 18.46% YoY compared to $130m in the same period last year.

On a monthly basis, other business services plunged by 31.17% MoM compared to exports of $154m in August 2023.

Furthermore, the export of transport and travel services contributed an amount of $69m and $51m, respectively in the review period.

The imports of services during the year amounted to $787m, which rose by 14.39% YoY, While on a monthly basis, imports inched down by 1.5% MoM.

Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $349m, witnessing a decline of 6.18% YoY and 3.59% MoM.

On the other hand, the travel services cost the country around $163m, recording a surge of 94.05 YoY compared to $84m in September 2022.

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