Trade deficit in services worsens by 2.6x YoY in April 2022

May 20, 2022 (MLN):  Pakistan’s trade deficit in services deteriorated by 2.6x YoY to $387 million in April 2022 from $148mn in the same month of the previous year, the monthly data released by the State Bank of Pakistan showed on Thursday.

Similarly, on a sequential basis, the country’s trade deficit in services widened by 41.24% MoM from $274mn in March 2022.

This has brought the trade deficit in services during the 10MFY22 to $3.57 billion, up by 71% YoY from $2bn in the corresponding period last fiscal year. 

Details made available by SBP revealed that the exports of services in April amounted to $627mn, i.e., up by 37% YoY while on monthly basis, it has inched up by around 3% MoM. Amongst the total exports, telecommunications, computers, and information services made the largest contribution with an amount of $249mn, showing an upsurge of 29% YoY. On the other hand, the services exported under the same category dropped by 4%, compared to the export in March 2022.

This is followed by other business services that brought $147mn into the country. In terms of growth, receipts from the exports of other business services moved up by 11% YoY while only monthly basis, the exports have declined by the same magnitude.

Moreover, the export of transport and travel services contributed an amount of $69mn and $44mn, respectively.

On the other hand, the imports of services during the month amounted to $1bn, showing a jump of 58% YoY while on a sequential basis, it has increased by 7% MoM.

Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $573mn i.e., up by 84% YoY while on a sequential basis, the import bill of the same services remained unchanged. Next up were other business services which cost the country around $142mn i.e., up by 19% YoY, and 7% MoM.

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