Pakistan’s services trade deficit decreases by $57 million

WEB DESK: In February, Pakistan’s service sector encountered a trade deficit of $158 million, marking a significant decrease of 52.27 per cent compared to the previous month’s deficit of $331 million, according to the latest data from the State Bank of Pakistan (SBP).

Yearly comparisons indicate that Pakistan reported a deficit of $57 million in service trade during the same period last year.

Detailed insights provided by the SBP reveal that service exports in February rose by 6.09 per cent year over year to $627 million, compared to $591 million in February 2023. However, on a month-to-month basis, exports experienced an 8.06 per cent decline compared to January 2023 figures.

Over the span of 8 months in FY24, service exports saw a slight dip of 1.36 per cent year over year, totaling $5.08 billion compared to $5.15 billion in FY23.

Among the various service exports in February, Telecommunications, Computer, and Information Services took the lead with $257 million, marking a notable 31.79 per cent increase year over year.

Additionally, Other Business Services contributed $122 million, showing a 7.02 per cent growth compared to the same period last year. However, on a monthly basis, this category experienced a 19.21 per cent decline.

Transport and travel services also played significant roles, with exports totaling $63 million and $61 million, respectively.

On the import side, services amounted to $785 million for the year, reflecting a 21.14 per cent increase year over year. However, monthly imports saw a 22.51 per cent decrease compared to the previous month, totaling $1.013 billion.

Transport imports were the highest at $417 million in February, witnessing a substantial 35.83 per cent year-over-year growth. However, there was a 6.71 per cent reduction compared to the previous month.

Travel services cost the country $159 million, showing a 35.9 per cent increase year over year but dropping by 37.65 per cent month over month.

Looking at the broader picture, imports during the first 8 months of FY24 stood at $6.971 billion, marking a significant increase of 28.19 per cent compared to the same period in FY23.