Trade deficit in services widens by 2.9x YoY in Aug’21

September 17, 2021 (MLN): Pakistan’s trade deficit in services ballooned by 2.9x YoY to $355 million during August 2021, from a deficit of $123mn recorded in the same month last fiscal year.

Details made available by the State Bank of Pakistan (SBP) revealed that the exports of services during August’21 valued at $531mn, i.e., up by 53% YoY. Amongst the total exports, Telecommunications, Computer and Information Services made the largest contribution with an amount of $224mn, showing an impressive growth of 81% YoY in August’21.

This is followed by Other Business Services that brought $136mn into the country. Receipts from the exports of said services swelled by 47.8% YoY during the said month. The country witnessed the export earnings of $57mn from Government Goods and Services that plunged by 7.54% YoY.

Moreover, the country earned $53mn from Travel Services, marking a colossal growth by2x YoY while the export of Transport contributed an amount of $28mn, down by 9.6% YoY in the month of August’21.

On the other hand, the imports of services during August’21 amounted to $886mn, showing a surge of 89% YoY as opposed to $469mn reported in August’20.

Amongst the total imports, the largest expenditure was incurred on Transport services for an amount of $313mn i.e., up by 78% YoY when compared to the same period last previous fiscal year. This was followed by Other Business Services which cost the country around $302mn i.e., surged by 92% YoY in August’21.

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