Services trade deficit shrinks 13.79pc in July

ISLAMABAD: The country’s services trade deficit witnessed decline of 13.79 percent during the first month of current financial year (2019-20) as compared to the corresponding period of last year.

The exports during July 2020 were recorded at US $ 436.05 million against the exports of US $ 459.99 million, showing decline of 5.20 percent, according to latest data of Pakistan Bureau of Statistics (PBS).

The imports into the country also witnessed decline of 9.3 percent by falling from US $ 879.88 million in July 2019 to US $ 798.05 million, the PBS data revealed.

Based on the figures, the services trade deficit in July 2020 was recorded at US $ 362 million against the deficit of US $ 419.89 million in July 2019, showing decline of 13.79 percent.

Meanwhile, on month-on-month basis, the exports from the country witnessed increase of 10.95 percent in July 2020 when compared to the exports of US $ 393.01 million in June 2020.

Likewise, imports into the country increased by 29.34 percent in July 2020 when compared to the imports of US $ 617.01 million in June 2020, the data revealed.

On the other hand, the country’s merchandize trade deficit witnessed reduction of 8.32 percent during the first two months of current fiscal year (2020-21) as compared to the deficit of the corresponding period of last year.

The deficit during July-August (2020-21) was recorded at US $ 3.382 billion as compared to the deficit of US $ 3.689 billion, showing decline of 8.32 percent.

During the period under review, the country’s exports registered negative growth of 4.27 percent, by going down from US $ 3.744 billion last year to US $ 3.584 billion during the current year.

On the other hand, the imports decreased by 6.28 percent, from US $ 7.433 billion last year to US $ 6.966 billion during the current year.

Meanwhile, on year-on-year basis, the country’s exports declined from US $ 1.858 billion in August 2019 to US $ 1.583 billion in August 2020, showing negative growth of 14.80 percent.

The imports also decreased by 11.85 percent by going down from US $ 3.720 billion last year to US $ 3.279 billion during the current year, the data revealed.

On month-on-month basis, the exports from the country decreased by 20.89 percent in August 2020 when compared to the exports of US $ 2.001 billion in July 2020.

Likewise, the imports of the country declined by 11.07% in August 2020 as compared to the imports of US $ 3.687 billion in July.