Trade deficit surges $14.599 billion in seven months

Pakistan's trade deficit for the first seven months surged by $14.599 billion, up by 41.23 percent over $10.337 billion for the same period of last year with exports declining by 0.48 per cent, according to Pakistan Bureau of Statistics (PBS).
Provisional trade figures released by the PBS here on Monday revealed a decline of exports to $15.189 billion during July-February 2011-12 from $15.263 billion for July-February 2010-11, a matter of grave concern for the economic managers on the external account.
Imports surged by 16.36 percent during the first seven months due to high prices of commodities in the international market - from $25.6 billion in the previous year to $29.788 billion in the current fiscal year. This may pose double risk to the economy as rise in import bill will create problems for the balance of payment position and high fuel and other commodity prices will fuel inflation in the country.
A nominal increase of 4.15 percent in exports in February 2012 over the previous month may provide some relief to the economic managers and raise hopes for a possible growth in exports. However exports would register an increase, analysts argue, only if the per unit price of our export items rise internationally and not due to an increase in volume as domestic productivity remains hostage to the energy crisis.
Analysis of the data showed that Pakistan's total exports stood at $15 billion during the first seven months of the current fiscal year and were 0.48 percent lower than the $15,263 billion for the same period of last year. On the other hand total imports during July -February 2011-12 increased to $29.788 billion, 16.36 percent higher against $25.6 billion for the same period of last year.
The country's exports registered a decline of 5 percent in February 2012 over February 2011. Exports in February 2012 declined to $2.034 billion against $2.141 billion for the same period of last year. However, imports registered a growth of 13.40 percent in February 2012 over the same month of last year as the country imported goods worth $3.462 billion in February 2012 as compared to $3.053 billion for the same month of last year.
The country's exports in the month of February 2012 over previous months of January 2012 showed a growth of 4 percent after exports touched $2.034 billion in February against $1.953 billion for January 2012. A decline of 5.15 per cent was also recorded in imports in February 2012 over previous months with imports sliding from $3.649 billion in January 2012 to $3.462 billion in February 2012.