February 20, 2023 (MLN): The service sector of Pakistan posed a trade surplus of $18 million in January 2023, plummeting by 79% MoM as compared to $86mn in January 2022, the monthly data released by the State Bank of Pakistan showed today.
However, this sector posted a trade deficit of $597mn in the same period last year.
Cumulatively, in 7MFY23, the trade deficit in services clocked in at $301mn, narrowing by 89% YoY as compared to $2.73bn in the corresponding period last fiscal year.
Details made available by SBP revealed that the exports of services in January amounted to $602mn, i.e., up by 17.35% YoY while on monthly basis, it has inched down by around 18% MoM.
Amongst the total exports, telecommunications, computers, and information services made the largest contribution with an amount of $190mn, witnessing a drop of 22.76% MoM while on yearly basis, it inched down by 2.15% YoY.
This is followed by other business services that brought $129mn into the country. In terms of growth, receipts from the exports of other business services moved up by 12.17% YoY while only monthly basis, the exports have declined by 12.84%.
Moreover, the export of transport and travel services contributed an amount of $58mn and $148mn, respectively.
On the other hand, the imports of services during the month amounted to $584mn, slumped by 47.39% YoY and 10.02% MoM.
Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $283mn i.e., down by 58.93% YoY while on a sequential basis, the import bill of the edges of the same service lower by 8.41% MoM.
Next up were other business services which cost the country around $77mn i.e., observing a fall of 44.20% YoY and 31.86% MoM.
