Trade deficit declines by 2.48pc to $19.98b

[Kabira]

ISLAMABAD - Pakistan’s trade deficit has recorded at $19.98 billion during previous financial year 2013-14.
The trade deficit - gap between imports and exports of goods - has recorded at $19.98 billion during last fiscal year (July 2013 to June 2014) compared to $20.49 billion of a year ago, showing a decline of 2.48 percent. The figures released by Pakistan Bureau of Statistics (PBS) on Friday showed that exports slightly surpass the imports during last year that resulted in decline in trade deficit.

The PBS data showed that exports have registered an increase of 2.75 percent, as country exported goods worth of $25.132 billion last financial year 2013-14 as against $24.46 billion of a year ago. Meanwhile, the imports have recorded minor growth of 0.36 percent, as it stood at $45.113 billion during the period under review as against $44.95 billion of a year ago.

The rupee appreciation had also played crucial role in reducing the trade imbalance in last year, as imports did not record traditional increase. The country’s exports have recorded mainly because of the GSP plus status granted by European Union to Pakistan. Commerce Minister Khurram Dastgir in early July told a group of journalists that exports to European markets during the first 11 months (July-May) of the outgoing fiscal year grew by an additional $700 million because of GSP+ status. The major share in this growth was grabbed by the textile and clothing sector.

Meanwhile, the exports could further enhance in the previous year if government provide uninterrupted power supply to the industries. The government had provided better power supply to the industries in the start of previous financial year 2013-14, which later reduces. Therefore, exports have shown negative growth in last couple of months (May and June) of the previous year.
The PML-N government has ambitious target to double the exports to $50 billion. Therefore, the Commerce Minister Khurram Dastgir Khan on Thursday constituted a committee comprising senior officers of Ministry of Commerce (MoC) to prepare recommendations for doubling the country’s export to $50 billion. The Committee, headed by Secretary Commerce, would meet fortnightly and will present its recommendations to the Minister for further action.
Meanwhile, according to the PBS figures, exports went up by 4.25 percent in June 2014 as against exports of its preceding month of May. Exports have recorded at $2.027 billion in June 2014 compared to $2.117 billion of May 2014. However, imports have recorded massive increase of 18.04 percent, as it registered at $4.338 billion in June 2014 against $3.675 billion of May 2014. Trade imbalance has recorded at $2.311 billion in June 2014 compared to $1.558 billion of Mat 2014, showing an increase of 48.33 percent.
Meanwhile, the PBS figures showed that country’s exports have decreased by 6.76 percent in June 2014 from same period of last year. Exports stood at $2.027 billion in June 2014, which were $2.174 billion in June 2013. Imports went down by 10.10 percent, as it recorded at $4.338 billion in June 2014 against $3.940 billion of June 2013. The trade deficit for June 2014 against June 2013 enhanced by 30.86 percent and was recorded at $2.311 billion.

Trade deficit declines by 2.48pc to $19.98b

So $25 billion export and $45 billion imports. I wonder if we can get breakdown of imports?

 

[Donatello]

Imports is mostly expensive stuff, like Oil, Automobiles, Machinery etc.

 

[forcetrip]

Missing another mark: Trade gap widens beyond IMF, govt’s expectation

ISLAMABAD:
Pakistan’s trade deficit widened to about $20 billion in the last fiscal year, far more than the official and International Monetary Fund’s projections but marginally lower than the preceding year, as the government missed its first year’s export target.
The figures released by the Pakistan Bureau of Statistics (PBS) on Friday showed that the country exported $25.2 billion worth of goods compared to imports valued at $45.2 billion, leaving a gap of $19.98 billion in 2013-14 that ended on June 30.
Compared to the preceding year, the trade gap contracted by 2.5%, but it was far higher than the official and the IMF’s projection of $16.6 billion, suggesting the fixing of an unrealistic target by the PML-N government. The IMF too could not accurately project the trade gap.

The higher projected trade deficit will have a direct bearing on the country’s balance of payments position. The State Bank of Pakistan on Monday withdrew the balance of payments figures after releasing it in the morning.
Against the target of $26.6 billion, exports reached $25.2 billion at the close of fiscal year 2013-14, up 2.8% over $24.5 billion worth of shipments a year earlier, according to the PBS. The government has projected 3.6% growth in exports.
It is not the first important target that the government has missed. Earlier, it missed key targets such as economic growth rate, investments, savings, inflation and foreign direct investment.
The import bill remained at $45.2 billion, showing a marginal growth of 0.36%, higher than the IMF and official projections. The government had projected a $43.3 billion import bill in its annual plan while the IMF had estimated imports at $42.7 billion.
Missing the trade deficit target by a wide margin will increase the current account deficit – the gap between external receipts and payments.
Higher-than-projected current account deficit will lead to a drawdown on foreign currency reserves held by the State Bank of Pakistan, currently standing at just $9.4 billion.
For the new fiscal year, the government has projected a trade deficit of $17.2 billion. It aims to take exports to $26.9 billion while the import bill could reach $44.2 billion.
Month-on-month trade figures showed that imports grew 18% and stood at $4.33 billion in June over May. In June, exports contracted by 4.3% to $2.1 billion over the previous month.
The trade deficit in the month alarmingly widened by almost half and stood at $2.3 billion on the back of dipping exports, according to the PBS.
The monthly trend was also reflected in year-on-year figures as the trade gap in June this year widened 30.9% compared to the corresponding month in the previous year and stood at $2.31 billion.
Exports slumped 6.7% to $2.1 billion this June, compared to last year while imports increased one-tenth to $4.4 billion.