The country's trade deficit further widened by 15.1 percent to $9.985 billion during the first nine months (July-March) of the current fiscal year as compared to $8.674 billion during the same period of the last financial year.
According to the official statistics made available to Business Recorder, total exports of the country amounted to $12.435 billion during July-March period of current fiscal year as compared to the exports of $12.014 billion in the same period last fiscal year 2005-06, projecting a nominal increase of 3.5 percent.
While the imports of the country for the period jumped by 8.9 percent to $22.420 billion as against the imports of $20.688 billion in the same period of last fiscal year.
However, the deficit declined by 6.8 percent during March 2007 with a deficit of $1.090 billion as compared to the trade deficit of $1.169 billion in March 2006. The exports of the country during the month of March 2007 were 1.533 billion as compared to the exports of $1.513 billion in March 2006 indicating an increase of just 1.3 percent.
Imports of the country during March 2007 were $2.623 billion as compared to the imports of $2.682 billion in March 2006, showing a decrease of 2.2 percent. Exports of the country have increased by 18.3 percent in March 2007 with total exports of $1.533 billion as compared to the exports of $1.296 billion in the month of February 2007.
Imports growth have shown declining trend in March 2007 with total imports of $2.623 billion as compared to imports made during February of $2.572 billion projecting a marginal increase of 2 percent. Trade deficit of the country declined by 14.6 percent during March 2007 with a total deficit of $1.090 billion as compared to a deficit of $1.276 billion in the month of February 2007.
The exports of the country remained at 66.6 percent during July-March period of the export target of $18.6 billion fixed for the current fiscal year 2006-07. However, the imports have surged to 80.1percent of the target of $28 billion fixed for the current fiscal year.
An analyst of the foreign trade said that although the imports showed declining growth trend with a nominal increase of 2 percent, but if imports continue to grow the whole year trade deficit would not only be higher compared to last year, but would also exceed the projected trade deficit for the current financial year.
He said that if this trend continues in the coming months, it would have a serious impact on the country's balance of payment, as well as having a negative impact on the health of the rupee. However, he said that increase in foreign direct investment and growth in remittances would help in making up the losses caused by this burgeoning trade deficit.
Although the category-wise data of the export would be released later in the month, the analyst said that figures indicated that there was some improvement in the export as it grew by 18.3 percent compared to the preceding month. The accomplishment of the whole year export target would depend on how the export grow in the coming months.
Soaring trade deficit has further aggravated the situation of country's negative current account balance threatening to even offset the positive impact of foreign direct investment and inflows by the overseas Pakistanis. The experts have expressed concerns that in the wake of rising foreign debt and slow export growth, the widening of current account deficit could create unbearable burden on the economy.
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