Trade deficit in services soars by 39% YoY in 4MFY22

November 19, 2021 (MLN): Pakistan’s trade deficit in services worsen by 39% YoY to $1.04bn during the 4M of the fiscal year 2022 from $750mn in the same period of the previous fiscal year.

According to the figures published by the State Bank of Pakistan, the trade deficit in services during the month of October’21 expanded by 30% YoY to $282mn from $217mn in the same month a year ago.

However, on a sequential basis, the country’s trade deficit in services swelled notably by 76% MoM from $160mn in September’21.

Details made available by SBP revealed that the exports of services during the month amounted to $532mn, i.e., up by 23% YoY while declining by 7% MoM. Amongst the total exports, Telecommunications, Computer and Information Services made the largest contribution with an amount of $195mn, showing an improvement of 29% as opposed to the $151mn recorded in October’20. However, on a sequential basis, the exports of the same services went down by 9% MoM. This is followed by Other Business Services that brought $125mn into the country. Receipts from the exports of Other Business Services swelled by 13% YoY, while on monthly basis, the export of the same commodity witnessed a drop of 5%.

Moreover, the export of Transport and Travel Services contributed an amount of $60mn and $42mn, respectively.

On the other hand, the imports of services during the month amounted to $814mn, showing a jump of 25% YoY and 12% MoM.

Amongst the total imports, the largest expenditure was incurred on Transport services for an amount of $410mn i.e., up by 104% YoY and 8% MoM. Next up was Other business services which cost the country around $115mn i.e., lower by 53% YoY and 8% MoM in October’21.

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