Trade deficit in services worsens by 40.4% YoY in March

April 23, 2022 (MLN):  Pakistan’s trade deficit in services widened by 40.42% YoY to $264 million during March 2022 from $188mn in the same month of the previous year, the monthly data released by the State Bank of Pakistan showed today.

On a sequential basis, the country’s trade deficit in services dropped by 9.2% MoM from $291mn in February 2022.

This has brought the trade deficit in services during the 9MFY22 to $3.2 billion, up by 63% YoY from $2bn in the corresponding period last fiscal year.

Details made available by SBP revealed that the exports of services during the month amounted to $668mn, i.e., up by 20.14% YoY while on monthly basis, it has jumped by around 25% MoM. Amongst the total exports, telecommunications, computer and information services made the largest contribution with an amount of $259mn, showing an upsurge of 29% MoM. On the other hand, the services export under the same category improved by 24%, compared to the export in February 2022.

This is followed by other business services that brought $165mn into the country. In terms of growth, receipts from the exports of other business services moved up by 21.33% MoM and 44.73% YoY.

Moreover, the export of transport and travel services contributed an amount of $60mn and $59mn, respectively.

On the other hand, the imports of services during the month amounted to $932mn, showing a jump of 25% YoY while on a sequential basis, it has increased by 13% MoM.

Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $558mn i.e., up by 66% YoY while inched up by 10% MoM. Next up was other business services which cost the country around $133mn i.e., up by 36% MoM, and 41.45% YoY.

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