Pakistan : Terrorist Wahabi Islamic Rep Pakistan 7

[Naresh]

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Trade deficit surpasses target of $14.5bn in 8 mths



* Reaches $14.599bn with four months of FY12 remaining



ISLAMABAD: The trade deficit target of $14.5 billion set for the July to June period of fiscal year 2011-12 has been surpassed in just eight months (July to February) period and reached $14.599 billion.



The State Bank of Pakistan, International Monetary Fund and other international financial institutions have already expressed their concern over the slow down in growth of country’s exports during January to June period of 2012 and had asked the country’s economic managers to make adequate arrangements for foreign exchange inflows to maintain foreign exchange reserves level at comfortable level, otherwise, the increasing trade deficit would have a negative impact on the country’s foreign exchange reserves as well as put pressure on the rupee against other major currencies.



According to the Pakistan Bureau of Statistics’ (PBS) provisional trade figures released on Monday, in international trade the country has posted a trade deficit of $14.599 billion during July to February period as compared with trade deficit of $10.337 billion recorded during the same period of last fiscal year, showing an increase of 41.23 percent. The country’s exports stood at $15.189 billion during July-February period of the ongoing fiscal year 2011-12 as against the exports of $15.263 billion in the same period of last fiscal year 2010-11, projecting a decrease of just 0.48 percent.



Imports of the country amounted to $29.788 billion during July to February period of the ongoing fiscal year 2011-12 when compared with imports of $25.600 billion in the same period of last fiscal year 2010-11, indicating an increase of 16.36 percent.



Exports of the country posted a negative 5 percent growth in the month of February 2012 with total exports at $2.034 billion as compared with exports of $2.141 billion in the month of February 2011.



Imports, on the other hand, witnessed a growth of 13.4 percent and amounted to $3.462 billion in the month of February 2012 as compared with imports of $3.053 billion in February 2011.



Trade deficit posted a huge growth of 56.58 percent during the month of February 2012 with a total deficit in trade at $1.428 billion as compared with trade deficit of $912 million in February 2011.



Exports of the country showed an increase of 4.15 percent in the month of February 2012, which totalled to $2.034 billion as compared with exports of $1.953 billion in January 2012. Imports of the country, however, posted a decline of 5 percent in February 2012 with total imports at $3.462 billion as compared with imports at $3.649 billion of the country in January 2012. Trade deficit also declined by 15.80 percent during February 2012, which amounted to $1.428 billion as compared with trade deficit of $1.696 billion in January 20112.



Pakistan is following export target of $25.8 billion this year and trends in exports are positive. Compared with exports, Pakistan’s imports have witnessed 17.7 percent growth mainly due to the increase in oil import bill, which was due to the increase in crude oil price, which has touched the mark of $124 per barrel.



Pakistan’s economic managers believe that due to the eurozone crisis Pakistan’s exports to EU will witness negative impact, however, they say that duty free market access on 75 Pakistani products in EU markets would help mitigate this negative impact and Pakistan’s exports will be on the rise.



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