Home Business Pak trade deficit in services sec cut 43% to $1.88bn last FY

Pak trade deficit in services sec cut 43% to $1.88bn last FY

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ISLAMABAD: Pakistan’s trade deficit in the services sector during the financial year 2020-21 decreased by 43.5 percent to $1.88 billion as compared to a deficit of $3.32 billion during the same period of the preceding financial year.
According to the figures released by the State Bank of Pakistan, on a sequential basis, the country’s trade deficit in services widened by 2.5 times on a month-on-month basis to $273 million. However, on a yearly basis, it posted a nominal increase of 2.2% YoY.
Details made available by the SBP revealed that the exports of services during FY21 amounted to $5.94 billion, i.e., up by 9.2 percent on a year-on-year basis. Amongst the total exports, telecommunications, computer and information services made the largest contribution with an amount of $2.12 billion, showing an improvement of 47.4 percent on a year-on-year basis in FY21.
This is followed by other business services that brought $1.42 billion into the country. Receipts from the exports of said services swelled by 7 percent on a year-on-year basis during the fiscal year 2020-21.
Moreover, the export of transport contributed an amount of $567 million, down by 23.5 percent on a year-on-year basis, while the country earned $500mn from travel services, marking a meagre growth of 2 percent on a year-on-year basis during July-June FY 2021.
Furthermore, the export of government goods and services brought in an amount of $1.04 billion into the country. On the other hand, the imports of services during FY21 amounted to $7.81 billion, showing a decline of 10.8 percent on a year-on-year basis as opposed to $8.75 billion reported in FY20.
Amongst the total imports, the largest expenditure was incurred on transport services for an amount of $2.95 billion i.e., down by 2.9 percent on a year-on-year basis when compared to the previous fiscal year. This was followed by other business services which cost the country around $2.40 billion i.e. lower by 6.3 percent on a year-on-year basis in July-June FY2021. – TLTP