Uptick in the trade deficit in various services during Jul-Dec FY20

January 21, 2020 (MLN): Pakistan exported worth $2.738 billion of services with a deficit of $1.79 billion during Jul-Dec FY20 against the deficit of $2.17 billion in the same period of last year, showing a decline in the deficit of about 17% YoY.

The imports of services amounted to $4.5 billion against $4.7 billion in Jul-Dec 2019.

The detailed data issued by State Bank of Pakistan (SBP) on Trade in Services reveals that trade deficit in Transport Services declined by 9%YoY as Pakistan witnessed dropped in transport services’ import bill to $ 1.67 billion against $1.8 billion in the corresponding period of last year.

Likewise, the trade deficit in Travel Services reduced by 3% YoY as it stood at $510.6 million against the deficit of $528.89 million in Jul-Dec 2019, mainly due to significant rise in exports of travel services as Pakistan exported $264.2 million worth of travel services against $204 million previous year.

Similarly, Pakistan received $701 million against the exports of Other business services, while imports of the same services grew from $1.2 billion to $1.3 billion which elevated trade deficit by 24% YoY to $627.9 million.

Other services such as Insurance & Pension Services also recorded an increase in trade deficit by 8%YoY to $ 128.49 million, whereas, Repairing and Maintenance Services witnessed fall in deficit by 84% YoY to $18.7 billion from $119 million last year.

Meanwhile, trade in Construction Services recorded a surplus of $55.98 million, which was 99% higher against the surplus recorded last year. This was due to the fact that Pakistan’s exports of Construction Services rose significantly by $37.9 million to $66 million. In addition, Pakistan did not import any construction services from abroad during Jul-Dec FY19, while in Jul-Dec FY20, Pakistan paid $10 million against the imports of Construction Services which lessened the impact of a rise in exports up to some extent.

Telecommunication Services witnessed 41% YoY increase in trade surplus as Pakistan received $652.7 million from exports of telecommunication services against $535 million which amplified trade surplus to $455.6 million from $ 324 million during Jul- Dec FY19.

Correspondingly, by exporting services of Government Goods, Pakistan collected $598.9 million but a considerable decline in import bill by $180.2 million to $190.6 million raised trade surplus by 46% YoY to $408.2 million from $280 million in the corresponding period of last year.

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