Declining import of services narrows down trade deficit by 52pc

KARACHI: Deficit in trade of services in the first 9 months of fiscal year 2020-21 witnessed a significant decline owing to more than 20 percent decrease in import of services from abroad.

The overall trade deficit in trade of services fallen to $ 1,362.53 million during 3 quarters of FY 2020-21 that was recorded $ 2,860.59 in corresponding period of FY 2019-20 representing 52.37 percent decrease in trade deficit.

According to trade figures issued by Pakistan Bureau of Statistics (PBS) here on Wednesday, Pakistan earned $ 4,371.95 million by exporting services to different foreign countries during the period from July 2020 to March 2021 that represented 0.61 percent growth over the corresponding period of fiscal year 2019-20.

During July-March 2019-20 Pakistan had exported services amounting to $ 4345.55 million while volume of imports of services remained $ 7,206.14 million. During the first nine months of FY-2020-21 imports of services shrunk to $ 5,734.48 million indicating 20.42 percent decrease.

During March 2021, services amounting to $ 536.95 million were exported while volume of imports of services was recorded $ 678.01 million, showing a deficit of $ 114.06 million in trade of services.

On yearly basis, exports of service in March 2021 increased by 31.72 percent while imports went up by 16.08 percent as compared to March 2020. The monthly volume of exports of services during March 2020 was recorded $ 428.14 million while imports amounted to $ 584.09 million showing a deficit of $ 155.95 million.

On monthly basis, exports of services in March compared to February 2020 witnessed an increase of 15.82 percent, imports increased by 7.95 percent while trade deficits in services sector declined 19.18 percent.

During February 2021 volume of exported services was $ 486.93 and imports $ 628.05 while trade deficit was recorded $141.13 million.