Exports of services shrink in December

ISLAMABAD: Services’ exports in December 2023 contracted year-on-year for the second consecutive month during the current fiscal year, according to data compiled by the Pakistan Bureau of Statistics.

The services exports shrank 6.93 per cent to $726.94 million in December from $781.09m in the corresponding month last year.

Contrary to this, merchandise exports reversed the trend and increased in January, December 2023 and November 2023 after a continual fall in the current fiscal year.

In rupee terms, the export of services grew 17.31pc in December to Rs205.94bn against Rs175.55bn in the corresponding month last year.

The export of services reached $3.76bn in the July-December period of FY24 against $3.87bn in the same period last year, dipping 2.70pc. In rupee terms, they recorded a massive improvement of 25.17pc to Rs1.08 trillion against Rs863.36bn in 6MFY23.

In FY23, the export of services stood at $7.30bn as against $7.10bn over the preceding year, a growth of 2.78pc.

At the same time, the import of services increased by 20.14pc to $881.93m in December from $734.12m over the corresponding month of last year.

The import of services increased by 25.50pc to $5.19bn in 6MFY24 against $4.14bn in the corresponding period last year.

In FY23, the import of services contracted by 38.04pc to $8.01bn against $12.94bn in the preceding fiscal year.

The trade deficit in services widened by 429.45pc to $1.43bn in July-December against $270.1m in the corresponding months last year.

In December, the trade deficit in services widened by 230pc to $154.99m against $46.97m in the corresponding month last year.