Pakistan annual trade deficit for 2007-08 closed at $20.745 billion, which is 52.92 percent more over $13.563 billion for 2006-07 because of food import bill and steep increase in prices of crude oil in the global market. Official figures released by the Federal Bureau of Statistic on Wednesday showed that the country imported goods worth $39.968 billion against $19.922 billion exports during 2007-08.
The deficit is $7.182 billion more as compared with the last year. Economists say this habit of running trade deficit throughout the year could be disastrous for the economy and the government has to evolve a strategy to mend its fence. Although some people question about $2.246 billion increase in exports in 2007-08, it made possible for the government to achieve $19.2 billion exports target for the year.
Further analysis of the data shows an increase of 5.51 percent in exports in June over last month that have increased to $2.053 billion in June from $$1.946 billion in May. The trade deficit was recorded $1.97 billion in June with $4.052 billion imports against $2.053 billion exports for the month.
Monthly comparison of trade data showed that there was about 57.42 percent increase in trade deficit in June 2008 over the same month last year. The deficit was increased from $1.252 billion in June 2007 to $1.971 billion in June 2008.
There was a huge increase in import bill because of high prices of oil and food import bill. The imports were as high as $39.968 billion at end of the year with over 30 percent increase from last year. The total imports in last year were $30.539 billion which have been increased to $39.968 billion, about $9.429 billion up over last year.
The growing trade deficit, experts says would not have only put pressure on foreign exchange reserves but would amassed more inflation because the country imports a number of food items to meet its domestic needs. Many fear that Pakistan was becoming increasingly an imports dependant country with the growing list even of food items, despite being an agricultural country.
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