Trade deficit in services worsens by 2.8x YoY in May 2022

June 28, 2022 (MLN):  Pakistan’s trade deficit in services deteriorated by 2.87x YoY to $380 million in May 2022 from $132mn in the same month of the previous year, the monthly data released by the State Bank of Pakistan showed on Tuesday.

On the other hand, the country’s trade deficit in services, on a sequential basis shrank by 4.2% MoM from $397mn in April 2022.

This has brought the trade deficit in services during the 11MFY22 to around $4 billion, up by 78.4% YoY from $2.2bn in the corresponding period last fiscal year.

Details made available by SBP revealed that the exports of services in May amounted to $514mn, i.e., up by 9.36% YoY while on monthly basis, it has inched down by around 20% MoM. Amongst the total exports, telecommunications, computers, and information services made the largest contribution with an amount of $183mn, down by 7.57% YoY. Similarly, the services exported under the same category dropped by 26.5%, compared to the export in April 2022.

This is followed by other business services that brought $124mn into the country. In terms of growth, receipts from the exports of other business services moved up by 1.63% YoY while only monthly basis, the exports have declined by 16.7%.

Moreover, the export of transport and travel services contributed an amount of $85mn and $37mn, respectively.

On the other hand, the imports of services during the month amounted to $894mn, showing a jump of 48.5% YoY while on a sequential basis, it has decreased by 14% MoM.

Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $558mn i.e., up by 2x YoY while on a sequential basis, the import bill of the same services dropped by 6.37% MoM. Next up were other business services which cost the country around $98mn i.e., up by 8.88% YoY. However, on a sequential basis, it has declined by 41% MoM.

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