Raza Khan

Pakistan’s trade deficit in services was reduced by 88.27% during the first 11 months (July-May) of the current fiscal year (2022-23), according to the Ministry of Commerce. The country’s trade deficit in services dropped to $607 million during the period under review from $5.175 billion during the same period of fiscal year 2021-22. Pakistan’s services exports increased by 3.37% during the first 11 months of FY23 and exports volume rose to $6.655 billion from $6.438 billion during the same period of last fiscal year. According to data, the IT sector has the major contribution among services exports during July-May FY23 with export volume of $2.369 billion against $2.383 billion during the same period of last fiscal year, with a slight decline of 0.58%.

With a decrease of 5%, exports of business services were registered at $1.444 billion during the months under review against $1.521 billion during the same period of last year. Exports of government goods and services also remained on the losing side during the period under review as export volume dropped to $974 million from $986 million during the corresponding period of FY22. With a substantial growth of 87%, exports of travel sector rose to $935 million during July-May FY23 from $500 million during the same months of FY22. Exports of the transport sector were recorded at $756 million during the first 11 months of 2022-23 compared to $722 million during the same months of last fiscal year, registering an increase of 4.70%.

Pakistan’s services imports were recorded at $7.262 billion during July-May FY23 against $11.613 billion during the corresponding period of last year, with a decline of 37.46%. Services exports grew by 19.80% in May and export volume rose to $617 million from $515 million during the same month of last fiscal year, the Ministry of Commerce said.  Exports of IT, business services, government goods and services, transport, and travel sectors were recorded at $236 million, $142 million, $86 million, $80 million and $53 million, respectively, during May 2023. Services imports were registered at $862 million in May compared to 978 million during the same month of last year, with a decline of 11.86%.

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, up by 17%, against $5.945 billion services exports of the preceding year (2020-21). Services imports remained at $12.087 billion during the last fiscal year. According to experts, Pakistan is likely to miss services exports target in the current fiscal year due to stagnant growth in IT and other sectors. The government has set a services export target of $10 billion for FY23. According to the Pakistan Freelancers Association (PAFLA), the country would miss the services exports target by 25% to 30% by the end of current fiscal year.

Credit : Independent News Pakistan-WealthPk