The services trade posted a deficit of $487 million during the first quarter of current fiscal year (FY14), compared to a surplus of $551 million in the corresponding period of last fiscal year. Economists said higher imports of transportation, travel and communication services are responsible for a higher deficit during the first quarter.
In addition, during the last fiscal year, the country received a much-awaited payment of Coalition Support Fund (CSF) worth over $1 billion in August 2012 that supported the services trade and resulted in a surplus account. "Although still some amount of CSF is due and recently a tranche of $322 million has been received from the US CSF that will be reflected in the next services trade report," they added.
According to the State Bank of Pakistan (SBP) the country''s services sector trade registered a deficit of $487.63 million - $745.5 million exports and $1.233 billion imports - during July-September of FY14. A detailed analysis revealed that during the period under review services sector exports and imports are on decline. Service sector exports slumped by 59 percent to $745.5 million in first quarter of current fiscal year compared to $1.84 billion in the corresponding period of last fiscal year. Similarly, with a decline of 4 percent services sector imports stood at $1.233 billion during July-September of FY14 against imports of $1.289 billion in the same period of last fiscal year.
During the period under review, the country earned $174.75 million on account of transportation, $47.46 million from travel, $75 million from telecommunication, $3.8 million from construction services, $54 million through computer information services, $10 million through financial services and some $254.6 million on account of government services. On the import side, some $576 million were spent on transportation, $215 million on travel, $35.5 million on communication services, $41.6 million on insurance and some $23.45 million for computer and information services.