RECORDER REPORT

KARACHI: The country’s services trade posted over $5 billion deficit during the last fiscal year (FY18) mainly due to higher import bill and lower exports proceeds.

According to State Bank of Pakistan (SBP) statistics, the country’s services trade deficit swelled by 19 percent during the last fiscal year. Services trade posted $ 5.17 billion deficit during July-June FY18 compared to $ 4.34 billion in same period of FY17, showing an increase of $ 831 million. Month on Month basis, during June 2018, services trade deficit was $ 436 million with $ 445 million exports and $ 881 million imports. A detailed analysis revealed that during the period under review services exports declined by 6 percent, while imports surged by 5 percent.

Pakistan’s services exports fell $ 350 million to $ 5.205 billion in FY18 as against $ 5.55 billion in corresponding period of last fiscal year.

The major decline in exports was arrived from the government services as the country not received even a single penny on account of logistic support (CSF) in FY18 as against some $ 550 million inflows in FY17.

Similarly, services sector imports surged to $10.376 billion in FY18 as against $ 9.89 billion in FY17, depicting an increase of $ 482 million.

Major imports were transport services $ 4 billion, transport $ 2 billion, telecommunication $ 478 million and government goods and services amounted to $ 626 million during the last fiscal year.