August 24, 2022 (MLN): Pakistan’s trade deficit in services improves by around 62% MoM to $260 million in July 2022 from $682mn in the previous month, the data released by the State Bank of Pakistan (SBP) showed on Tuesday.
Similarly, the country’s trade deficit in services, on a yearly basis shrank by 9.4% YoY from $287mn in July 2021.
Details made available by SBP revealed that the exports of services in July 2022 amounted to $530mn, i.e., up by 8% YoY while on monthly basis, it has declined by 16.53% MoM. Amongst the total exports, telecommunications, computers, and information services made the largest contribution with an amount of $199mn, up by 1.53% YoY. On the other hand, the services exported under the same category dropped by 15.31% MoM, compared to the export in June 2022.
This is followed by other business services that brought $119mn into the country. In terms of growth, receipts from the exports of other business services moved down by 9.16% YoY and 27.4% MoM.
Moreover, the export of transport and travel services contributed an amount of $69mn and $45mn, respectively.
On the other hand, the imports of services during the month amounted to $790mn, showing a meager increase of 1.54% YoY. However, on a sequential basis, it has plunged by 40% MoM.
Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $576mn i.e., up by 74% YoY while on a sequential basis, the import bill of the same services dropped by 20.2% MoM. Next up were other business services which cost the country around $84mn, plummeting by 62% YoY and 38% MoM compared to $220mn in July 2021, and $137mn in June 2022, respectively.
