ISLAMABAD, March 8: Pakistan’s trade deficit swelled to record $8.890 billion during the first eight months (July-Feb) of the current fiscal as compared to $7.504 billion the same period last year, showing a jump of 18.47 per cent.

In February 2007, the trade deficit expanded by 30.05 per cent over February 2006 as exports dipped and imports grew at much higher rate, according to official figures released here on Thursday by Federal Bureau of Statistics (FBS).

Export of goods rose marginally at a rate of 3.86 per cent to fetch a total $10.906 billion during July-Feb period as against $10.500 billion the same period the last year.

The government has set an export target of $18.6 billion for the current fiscal year. But keeping in view the slow pace the country is unlikely to realise $7.694 billion in export proceeds during the next four months to achieve the target.

Imports climbed by 9.95 per cent to $19.797 billion during the period as against $18.005 billion the same period last year, which had resulted in pushing the trade deficit further higher. The government has projected import bill of $28 billion for FY07.

In case the slowdown in export continues it will be very difficult for the country to beat or match the last year’s figure. As there is no surplus in non-traditional products, the exports also do not seem to grow at much faster pace in coming months.

Advisor to Finance Minister Dr Ashfaq Hassan Khan told Dawn that though the trade gap had widened to a higher level but foreign inflows also recorded equally similar growth to bridge the gap.

He said that remittances and foreign direct investment alone had crossed the $6bn-mark in first seven months which would offset the impact of rising trade gap.

Mr Khan said that imports were growing at a normal rate of around nine per cent from the start of the current fiscal year, which according to him would not have serious impact on the balance of payment.

He was of the opinion that the size of the GDP would also increase during the current fiscal year so as percentage the trade gap would be lesser than the last year.

Opinion

Editorial

Closed doors
Updated 08 Jan, 2025

Closed doors

The nation’s fate has been decided through secret deals for too long, with the result that the citizenry has become increasingly alienated from the state.
Debt burden
08 Jan, 2025

Debt burden

THE federal government’s total debt stock soared by above 11pc year-over-year to Rs70.4tr at the end of November,...
GB power crisis
08 Jan, 2025

GB power crisis

MASS protests are not a novelty in Pakistan, and when the state refuses to listen through the available channels —...
Fragile peace
Updated 07 Jan, 2025

Fragile peace

Those who have lost loved ones, as well as those whose property has been destroyed in the clashes, must get justice.
Captive power cut
07 Jan, 2025

Captive power cut

THE IMF’s refusal to relax its demand for discontinuation of massively subsidised gas supplies to mostly...
National embarrassment
Updated 07 Jan, 2025

National embarrassment

The global eradication of polio is within reach and Pakistan has no excuse to remain an outlier.