April 20, 2023 (MLN): The service sector of Pakistan posed a trade deficit of $32 million in March 2023, improving by 92% YoY as compared to $394mn in March 2022, the monthly data released by the State Bank of Pakistan (SBP) showed.
On the other hand, the deficit increased by 3.22% MoM compared to a deficit of $31mn in February 2023.
Cumulatively, in 9MFY23, the trade deficit in services clocked in at $229mn, narrowing by 94.6% YoY as compared to $4.26bn in the corresponding period last fiscal year.
Details made available by SBP revealed that the exports of services in March 2023 amounted to $615mn, i.e., up by 8% MoM while on yearly basis, it has decreased by 13.5% YoY.
Amongst the total exports, telecommunications, computers, and information services made the largest contribution with an amount of $223mn, witnessing a drop of 14.23% YoY while on monthly basis, it inched up by 14.35% MoM.
This is followed by other business services that brought $122mn into the country. In terms of growth, receipts from the exports of other business services moved down by 29% YoY. Whereas on monthly basis, it registered an increase of 13% MoM.
Moreover, the export of transport and travel services contributed an amount of $57mn and $98mn, respectively.
On the other hand, the imports of services during the month amounted to $647mn, slumped by 41.48% YoY whereas, on monthly basis, it edged higher by 1.44% MoM.
Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $326mn i.e., down by 53.36% YoY while on a sequential basis, the import bill of the same service increased by 15.6% MoM.
Next up were other business services which cost the country around $121mn i.e., observing a decline of 14% YoY while on a sequential basis, it registered an increase of 8% MoM.
