Trade deficit in goods, services narrows 5.3pc in July-January

KARACHI: Trade deficit in goods and services narrowed 5.3 percent year-on-year to $19.704 billion during the first seven months of the current fiscal year of 2018/19, the central bank’s data showed on Thursday.

The State Bank of Pakistan’s (SBP) provisional data showed that trade deficit in goods and services stood at $20.796 billion in the July-January period of the last fiscal year.

In July-January, exports of goods and services stood at $17.228 billion compared with $17.036 billion in the corresponding period a year earlier.

Merchandise exports amounted to $14.150 billion, up from $13.931 billion. Exports of services were recorded at $3.078 billion as opposed to $3.105 billion.

Imports of goods and services fell to $36.932 billion in the first seven months as against $37.832 billion in the corresponding period a year earlier.

Merchandise imports increased to $31.763 billion from $31.519 billion, while imports of services decreased to $5.169 billion from $6.313 billion.

The SBP’s data further showed that transport services exports declined $425 million in the July-January period from $571 in the corresponding period a year earlier. Exports of travel services earned the country $247 million during the period under review compared to $218 million in the corresponding period a year earlier. Likewise, exports of telecommunication, computer and information services rose to $628 million as against $613 million. Other business services fetched exports revenue of $902 million compared to $763 million. Exports of government services, including logistics support fell to $754 million from $781 million. Export revenue from transport services also dropped to $425 million compared to $571 million. Financial services exports dipped to $56 million from $81 million. Construction services exports improved to $32 million compared to $40 million.

In July-January, services imports bill was noticeably reduced due to major reduction in imports of transport and travel services.

The SBP’s data showed that imports of transport services decreased to $1.991 billion during the period under review compared to $2.319 billion in the corresponding period a year earlier.

Travel services imports came down to $852 million from $1.215 billion. Import of other business services amounted to $1.342 billion, down from $1.540 billion. Import of financial services fell to $91 million from $188 million. Charges for the use of intellectual property shrank to $96 million from $139 million. Import bill of telecommunication, computer and information services was cut to $242 million from $281 million.

Import bill of maintenance and repair services increased to $70 million during the seven-month period compared to $43 million. Imports of insurance and pension services increased to $151 million from $140 million, according to the central bank.