Raza Khan

Pakistan’s trade deficit in services dropped by 89.19% to $340 million during the first eight months (July-February) of the current fiscal year (2022-23) from $3.147 billion during the same months of last fiscal year (2021-22), WealthPK reported. The country’s services exports rose to $4.778 billion during the period under review from $4.488 billion during the corresponding months of the previous fiscal year, with an addition of 6.46%, according to the Ministry of Commerce.

On the other hand, Pakistan’s imports of services declined by 33% during the period under review to $5.118 billion from $7.635 billion during the corresponding months of the last fiscal year. Exports of IT, business services, transport, government goods and services, and travel sectors remained major contributors among the services exports during the months under review.

According to data, the IT sector has the major contribution among services exports during July-February with an export volume of $1.718 billion against $1.689 billion during the same period of last fiscal year, with an increase of 1.71%. Business services exports were registered at $1.053 billion during July-February FY23 against $1.043 billion during the corresponding period of last year, with a marginal growth of 1%.

With an increase of 2.64%, exports of government goods and services were recorded at $737 million during July-February FY23 against $718 million during the corresponding period of last year. With a substantial growth of 65.55%, exports of the travel sector rose to $596 million during the period under review from $360 million during the same months of 2021-22.

Exports of the transport sector rose to $536 million during the first eight months of fiscal year 2022-23 from $496 million during the same months of last fiscal year, registering an increase of 8%. Exports of construction, insurance and pension services, and financial services were recorded at $28 million, $43 million, and $48 million, respectively, during the period under review.

Services exports also grew by 5.70% during February FY23 and the export volume rose to $574 million from $543 million during the same month of last year.  Exports of IT, business services, government goods and services, transport, and travel sectors were recorded at $195 million, $110 million, $89 million, $58 million and $112 million, respectively, during February 2023.

Services imports were registered at $613 million during February 2023 compared to $954 million during the same month of last year, with a decline of 35.74%. Pakistan’s trade deficit in services during February FY23 declined by 90.51% to $39 million compared to a trade deficit of $411 million during the same month of last fiscal year.

According to the State Bank of Pakistan (SBP), the country’s total services exports were recorded at $6.957 billion during the last fiscal year 2021-22, up 17% against $5.945 billion of exports during the preceding year (2020-21). Services imports remained at $12.087 billion during the last fiscal year. The Ministry of Commerce has projected services’ exports worth $7.937 billion for the current fiscal year, while imports of services are projected to be around $14 billion.

Credit: Independent News Pakistan-WealthPk