Trade deficit in services increases by 2.3x YoY in December

January 22, 2022 (MLN):  Pakistan’s trade deficit in services widened by 2.3x YoY to $342 million during December 2021 from $145mn in the same month of the previous year, the monthly data released by the State Bank of Pakistan showed today.

On a sequential basis, the country’s trade deficit in services increased by 19.16% MoM from $287mn in November’21.

This has brought the trade deficit in services during the first six months of the fiscal year 2022 to $1.83billion, up by 94.6% YoY from $944mn in the corresponding period last fiscal year.

Details made available by SBP revealed that the exports of services during the month amounted to $674mn, i.e., up by 7.49% YoY and 18.45% MoM. Amongst the total exports, telecommunications, computer and information services made the largest contribution with an amount of $251mn, showing an improvement of 28.71% YoY and 13.57% MoM.

This is followed by other business services that brought $127mn into the country. In terms of growth, receipts from the exports of other business services inched up by 8.86% MoM while on yearly basis, the export of the same commodity witnessed a drop of 9.8% YoY.

Moreover, the export of transport and travel services contributed an amount of $72mn and $63mn, respectively.

On the other hand, the imports of services during the month amounted to $1bn, showing a jump of 31.6% YoY while on a sequential basis, it moved up by 18.69% MoM.

Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $497mn i.e., up by 76.86% YoY while inched up by 18.26% MoM. Next up was other business services which cost the country around $208mn i.e., higher by 31.65% MoM, down by 16.46% YoY in December’21.

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