KARACHI: Pakistan’s trade deficit in services worsen by 39 percent year-on-year to $1.04 billion during the four months of the ongoing fiscal year 2021-22 from $750mn in the same period of the previous fiscal year.
According to the figures published by the State Bank of Pakistan (SBP), the trade deficit in services during the month of October 2021 expanded by 30 percent year-on-year to $282 million from $217 million in the same month a year ago.
However, on a sequential basis, the country’s trade deficit in services swelled notably by 76 percent month-on-month from $160 million in September 2021.
Details made available by SBP revealed that the exports of services during the month of October 2021 amounted to $532 million which are up by 23 percent year-on-year while declining by 7 percent on a month-on-month basis.
Amongst the total exports, telecommunications, computer and information services made the largest contribution with an amount of $195 million, showing an improvement of 29 percent as opposed to the $151 million recorded in October 2020.
However, on a sequential basis, the exports of the same services went down by 9 percent month-on-month. This is followed by other business services that brought $125 million into the country.
Receipts from the exports of other business services swelled by 13 percent year-on-year, while on monthly basis, the export of the same commodity witnessed a drop of 5 percent.
Moreover, the export of Transport and Travel Services contributed an amount of $60 million and $42 million, respectively. On the other hand, the imports of services during the month amounted to $814 million, showing a jump of 25 percent year-on-year and 12 percent month-on-month.
Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $410 million i.e., up by 104 percent year-on-year and 8 percent month-on-month. Next up were other business services which cost the country around $115 million i.e. lower by 53 percent year-on-year and 8 percent month-on-month in October 2021.