Trade deficit in services worsens by 2.5x YoY in June 2022

July 27, 2022 (MLN): Pakistan’s trade deficit in services widened by 2.5x YoY to $727 million in June 2022 compared to the deficit $293mn recorded in June 2021, 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 46.2% MoM from $497mn in May 2022.

This has brought the trade deficit in services for the overall fiscal year 2022 to $5.17billion, up by 2x YoY from $2.51bn in FY21.

Details made available by SBP revealed that the exports of services during the month amounted to $646mn, i.e., up by 11.76% YoY and 29.71% MoM. Amongst the total exports, telecommunications, computers, and information services made the largest contribution with an amount of $235mn, showing a jump of 11.90% YoY and 28.41% MoM.

This is followed by other business services that brought $164mn into the country. In terms of growth, receipts from the exports of other business services moved up by 13.10% YoY while on monthly basis, it climbed up by 32.25% MoM.

Moreover, the export of transport and travel services contributed an amount of $71mn and $41mn, respectively.

On the other hand, the imports of services during the month amounted to $1.37bn, showing a jump of 57.63% YoY while on a sequential basis, it has moved up by 38% MoM.

Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $772mn, up by 2x YoY while inched up by 17.5% MoM. Next up was travel services which cost the country around $267mn, witnessing a growth of over 3x YoY while on MoM basis, it also increased by more than twofold.

Copyright Mettis Link News