May 22, 2019 (MLN): Pakistan’s trade deficit in services has broadened by 52% in April 2019, when compared to the deficit recorded last month as the figure shot up by $151.9 million from $289.2 million to $441.12 million.
This brings the net cumulative deficit for ongoing fiscal year (FY19) to $3.2 billion which is fortunately much lesser when compared to the trade deficit recorded in the same period last year ($5 billion).
According to a detailed account of services trade published by the State Bank of Pakistan, This month’s deficit is largely financed by the Transport sector which observed a deficit of $271 million in trade of its services and the Travel sector which recorded $164.4 million deficit in their trade services.
Services provided in freight sea transport as well as passenger flights were the main reasons why the transport sector emerged as the biggest source of trade deficit in services.
The transport sector has recorded the largest deficit in trade of its services for the 10 month period (July 2018 – April 2019) as it is recounted at $2.4 billion. Following the sector closely with a cumulative net deficit of $928 million is the travel sector.
However, as compared to last year, the cumulative deficit in both these sectors has reduced by noticeable margins.
