Pakistan Bureau of Statistics said that Pakistan's trade deficit during the first half (July to December) of 2011-12 fiscal year ballooned 38.5% YoY to USD 11.476 billion against USD 8.287 billion recorded in the corresponding period last fiscal.
Independent economists attribute this increase to rising trend in crude oil and commodity prices in the international market. They also say that once again the economy is heading towards huge trade deficit.
According to the PBS data on trade, during December 2011, Pakistani exports were down by 11.5% YoY, as USD 1.854 billion worth of products were exported abroad while in same month last year exports stood at USD 2.094 billion. During the month, imports were up by 13.6% YoY to USD 4.26 billion as compared with USD 3.75 billion recorded in the corresponding month.
During the first half, country's imports stood at USD 22.713 billion almost double the total volume of exports totaling USD 11.237 billion. In corresponding period last year, exports stood at USD 10.815 billion and imports at USD 19.10 billion. Export during the period grew only 3.9% while imports were up by 18.9% over corresponding period of the last fiscal.
In December 2011 alone, trade deficit was up by 45.26% YoY to USD 2.407 billion against USD 1.657 billion in same month of last fiscal. The PBS says during December 2011, exports registered increase of 19.5% and imports also up by 14.27% as compared to November 2011, when exports stood at USD 1.55 billion and imports at USD 3.73 billion.
The rising circular debt is also considered to be an indirect reason of increasing international prices of petroleum products. Economists believe that unavailability of the power including electricity and gas the country's exports are easing and Pakistani products are losing markets as exporters are unable to fulfill their commitments.
They believe that huge import pressure and low exports growth envisages that by end this fiscal, trade deficit would be well above USD 22 billion.
(Sourced from www.thenews.com.pk)
