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Trade deficit surpasses $14.5bn target, hits $16bn
By Sajid Chaudhry
ISLAMABAD: The country has crossed the trade deficit target of $14.5 billion set for fiscal year 2011-12 to $16 billion during nine months (July to March) of 2011-12, showing a rise of $1.5 billion owing to declining exports and increasing imports.
According to the provisional trade figures released by the Pakistan Bureau of Statistics (PBS) on Tuesday, the trade deficit of $16.095 billion is some $1.5 billion more than the annual target of $14.5 billion, and it is expected that the trade deficit will reach at an unsustainable level by June 30, 2012.
According to the PBS provisional trade figures, in international trade the country has posted a trade deficit of $16.095 billion during July to March period of 2011-12 as compared with trade deficit of $11.289 billion recorded during the same period of last fiscal year, showing an increase of $4.806 billion or 42.57 percent. The countrys exports stood at $17.190 billion during July-March period of the ongoing fiscal year 2011-12 as against the exports of $17.727 billion in the same period of last fiscal year 2010-11, projecting a decrease of just 3.03 percent.
Imports of the country amounted to $33.285 billion during July to March period of the ongoing fiscal year 2011-12 when compared with imports of $29.016 billion in the same period of last fiscal year 2010-11, indicating an increase of 14.71 percent.
Exports of the country posted a negative 18.76 percent growth in the month of March 2012 with total exports at $2.001 billion as compared with exports of $2.463 billion in March 2011.
Imports, on the other hand, witnessed a growth of 2.34 percent and amounted to $3.495 billion in March 2012 as compared with imports of $3.417 billion in March 2011.
Trade deficit posted a huge growth of 56.81 percent during the month of March 2012 with a total deficit in trade at $1.496 billion as compared with trade deficit of $954 million in March 2011.
Exports of the country showed a decrease of 1.62 percent in March 2012, which totalled to $2.001 billion as compared with exports of $2.034 billion in February 2012. Imports of the country, however, posted an increase of 1.01 percent in March 2012 with total imports at $3.497 billion as compared with imports at $3.462 billion of the country in February 2012. Trade deficit also increased by 4.76 percent during March 2012, which amounted to $1.496 billion as compared with trade deficit of $1.428 billion in February 20112.
Pakistan is following export target of $25.8 billion this year and trends in exports are not encouraging as exports have started showing a declining trend. Compared with exports, Pakistans imports have witnessed 42.57 percent growth mainly due to the increase in oil import bill, which was due to the increase in crude oil price, which has crossed over the mark of $120 per barrel.
The State Bank of Pakistan, International Monetary Fund and other international financial institutions have already expressed their concern over the declining trend in growth of countrys exports and have asked the countrys economic managers to make adequate arrangements for foreign exchange inflows to maintain foreign exchange reserves at comfortable level. According to them, otherwise, the increasing trade deficit would have a negative impact on the countrys foreign exchange reserves as well as put pressure on the rupee against other major currencies.
Pakistans economic managers believe that due to the eurozone crisis Pakistans exports to EU will witness a negative impact, however, they say that duty free market access on 75 Pakistani products in EU markets would help mitigate this negative impact and Pakistans exports will be on the rise. " India did a huge favor for Pakistan seems like."
Yearly comparison
9 months 2011-12 9 months 2010-11 Difference
Trade deficit $16bn $11.289bn 42.57%
Exports $17.190bn $17.727bn 3.03%
Imports $33.285bn $29.016bn 14.71%
By Sajid Chaudhry
ISLAMABAD: The country has crossed the trade deficit target of $14.5 billion set for fiscal year 2011-12 to $16 billion during nine months (July to March) of 2011-12, showing a rise of $1.5 billion owing to declining exports and increasing imports.
According to the provisional trade figures released by the Pakistan Bureau of Statistics (PBS) on Tuesday, the trade deficit of $16.095 billion is some $1.5 billion more than the annual target of $14.5 billion, and it is expected that the trade deficit will reach at an unsustainable level by June 30, 2012.
According to the PBS provisional trade figures, in international trade the country has posted a trade deficit of $16.095 billion during July to March period of 2011-12 as compared with trade deficit of $11.289 billion recorded during the same period of last fiscal year, showing an increase of $4.806 billion or 42.57 percent. The countrys exports stood at $17.190 billion during July-March period of the ongoing fiscal year 2011-12 as against the exports of $17.727 billion in the same period of last fiscal year 2010-11, projecting a decrease of just 3.03 percent.
Imports of the country amounted to $33.285 billion during July to March period of the ongoing fiscal year 2011-12 when compared with imports of $29.016 billion in the same period of last fiscal year 2010-11, indicating an increase of 14.71 percent.
Exports of the country posted a negative 18.76 percent growth in the month of March 2012 with total exports at $2.001 billion as compared with exports of $2.463 billion in March 2011.
Imports, on the other hand, witnessed a growth of 2.34 percent and amounted to $3.495 billion in March 2012 as compared with imports of $3.417 billion in March 2011.
Trade deficit posted a huge growth of 56.81 percent during the month of March 2012 with a total deficit in trade at $1.496 billion as compared with trade deficit of $954 million in March 2011.
Exports of the country showed a decrease of 1.62 percent in March 2012, which totalled to $2.001 billion as compared with exports of $2.034 billion in February 2012. Imports of the country, however, posted an increase of 1.01 percent in March 2012 with total imports at $3.497 billion as compared with imports at $3.462 billion of the country in February 2012. Trade deficit also increased by 4.76 percent during March 2012, which amounted to $1.496 billion as compared with trade deficit of $1.428 billion in February 20112.
Pakistan is following export target of $25.8 billion this year and trends in exports are not encouraging as exports have started showing a declining trend. Compared with exports, Pakistans imports have witnessed 42.57 percent growth mainly due to the increase in oil import bill, which was due to the increase in crude oil price, which has crossed over the mark of $120 per barrel.
The State Bank of Pakistan, International Monetary Fund and other international financial institutions have already expressed their concern over the declining trend in growth of countrys exports and have asked the countrys economic managers to make adequate arrangements for foreign exchange inflows to maintain foreign exchange reserves at comfortable level. According to them, otherwise, the increasing trade deficit would have a negative impact on the countrys foreign exchange reserves as well as put pressure on the rupee against other major currencies.
Pakistans economic managers believe that due to the eurozone crisis Pakistans exports to EU will witness a negative impact, however, they say that duty free market access on 75 Pakistani products in EU markets would help mitigate this negative impact and Pakistans exports will be on the rise. " India did a huge favor for Pakistan seems like."
Yearly comparison
9 months 2011-12 9 months 2010-11 Difference
Trade deficit $16bn $11.289bn 42.57%
Exports $17.190bn $17.727bn 3.03%
Imports $33.285bn $29.016bn 14.71%
