Trade in services posts over $1 billion deficit in July-October

Trade in services posted over $1 billion deficit during the first four months of this fiscal year owing to lower exports. Pakistan has not received a single penny on account of non-payment of Coalition Support Fund (CSF) from the US during this fiscal year, while, during the last fiscal year till October, some $713 million CSF inflows were arrived. The absence of CSF inflows has largely contributed to higher deficit. However, excluding CSF inflows, all other services trade exports are better than previous year.
According to State Bank of Pakistan (SBP) the country''s services trade posted a $1.099 deficit during the July-October of FY17 compared to $714 million in the same period of FY16, showing an increase of 54 percent or $385 million.
The detailed analysis revealed that during the period under review services sector exports fell by 25 percent and imports 5 percent. Pakistan''s services sector exports stood at $1.613 billion in first four months of this fiscal year against $2.14 billion in the corresponding period of last fiscal year. Similarly, services sector imports reached $2.712 billion in July-October of FY17 against $2.854 billion in the same period of FY16, showing a decline of $142 million.
During the period under review, the country earned $397 million on account of transportation services, $96 million from travel, $286 million from telecommunication, $27 million from construction, $23 million through financial services, $68 million from insurance sector and some $398 billion on account of government services. Meanwhile, transportation payments (imports) stood at $1.109 billion, travel $548 billion, telecommunication $137 million, financial sector $51 million, insurance $80 million and some $89 million were paid as charges for use of intellectual propriety. Month-on-month basis, during October 2016, services trade deficit stood at $181 million with $649 million imports and $468 million exports.