Services trade deficit shrinks 38.02 in 5 months, exports increase 12.90pc in November

ISLAMABAD: The country’s services trade deficit contracted by 38.02 percent during the first five months of the current financial year (2019-20) as compared to the corresponding period of last year.

The services trade deficit during July-November (2020-21) was recorded at $925.20 million against the deficit of $1492.85 million in July-November (2019-20), according to the latest data of Pakistan Bureau of Statistics (PBS).

The services exports during the five months under review were recorded at $2158.06 million against the exports of US $2284.36 million last year, showing negative growth of 5.53 percent.

The imports into the country shrunk by 18.37 percent by falling from US $3777.21 million to US $3083.26 million, the PBS data revealed.

Meanwhile, on year-on-year basis, the services exports from the country increased by 12.90 percent and were recorded at $506.90 million in November 2020 against the exports of $448.99 million in November 2019.

On the other hand, the imports declined by 9.81 percent by falling from $672 million in November 2019 to $606.09 million in November 2020, the data revealed.

On month-on-month basis, the exports from the country witnessed increase of 17.87 percent in November 2020 when compared to the exports of $430.05 million in October 2020.

On the other hand, imports into the country decreased by 14.65 percent in November 2020 when compared to the imports of US $710.11 million in October 2020, the PBS data revealed.

It is pertinent to mention here that the country’s merchandize exports increased by 4.98 percent during the first half (H1) of the current fiscal year (2020-21) as compared to the corresponding period of last year.

The exports from the country during July-December (2020-21) were recorded at $12.098 billion against the exports of $11.524 billion during July-December (2019-20), according to the latest PBS data.

The imports into the country during the period under review also increased by 5.72 percent by growing from $23.195 billion last year to $24.521 billion during the first half of current fiscal year.

Based on the figures, the country’s trade deficit increased by 6.44 percent during the first half compared to the corresponding period of last year.

The trade deficit during the first six months of the current fiscal year was recorded at $12.423 billion against the deficit of $11.671 billion last year.