Services sector’s deficit higher by USD 2 billion – Alfalah Securities Limited

Karachi: The country’s services trade deficit crossed USD 2 billion during 9MFY12 on the back of higher imports and a slowdown in exports.

According to Alfalah Securities Limited, major decline in the exports of financial, communications and government services has resulted in a rise in deficit. The sector’s deficit mounted to USD 2.131bn in 9M FY12 higher by 100.3% against USD 1.064 billion in the corresponding period last year where imports surged to USD 5.823 billion up by 6% YoY during 9MFY12 against imports of USD 5.5 billion last year and export slowed to USD 3.692 billion dropping by 17%. During the month of March 2012, the services sector posted a deficit of USD 214 million down by 27% after registering exports of USD 445 million and imports of USD 659 million. The growing deficit would exert pressure on the balance of payment which would weaken the economic situation of the country.