Pakistan’s services trade deficit surges by over 75% to $216 million

WEB DESK: In September, Pakistan’s service sector faced a trade deficit of $216 million, marking a substantial 75.61 per cent increase compared to the same period last year when the deficit stood at $123 million, as revealed by the recent data released by the State Bank of Pakistan (SBP).

On a monthly basis, the deficit grew by 9.09 per cent compared to August 2023, rising from $198 million to $216 million.

The details disclosed by SBP indicated that service exports in August experienced a 1.06 per cent year-on-year increase, reaching $571 million compared to $565 million in September 2022.

However, there was a 5 per cent decline in exports on a monthly basis compared to figures for August 2023.

Cumulatively, in the first three months of the fiscal year 2024, service exports decreased by 0.58 per cent to $1.707 billion, down from $1.717 billion in the same period of the previous fiscal year.

Within these exports, the telecommunications, computers, and information services sector made the largest contribution, amounting to $655 million, showcasing a 3.31 per cent year-on-year increase.

In September, these services witnessed a 0.48 per cent year-on-year decrease and a 12.34 per cent monthly decrease, reaching a total of $206 million.

Other business services brought in $106 million during this period, showing an 18.46 per cent year-on-year decline compared to the same period last year.

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On a monthly basis, these services decreased by 31.17 per cent compared to August 2023, when exports were $154 million.

Additionally, transport and travel services contributed $69 million and $51 million, respectively, during the review period.

On the import side, the total services imported during the year amounted to $787 million, indicating a 14.39 per cent year-on-year increase. However, there was a 1.5 per cent monthly decrease in imports.

Transport services accounted for the largest expenditure at $349 million, which was 6.18 per cent lower year-on-year and 3.59 per cent lower monthly.

In contrast, travel services cost the country around $163 million, marking a significant 94.05 per cent year-on-year increase compared to $84 million in September 2022.