11MFY12 trade deficit widens to USD 19.43 bn – Alfalah Securities Limited

Karachi, June 12, 2012 (PPI-OT): Pakistan’s trade deficit has widened by 37.2%YoY during the 11MFY12 to USD 19.43 bn from USD 14.16 bn last year, according to Pakistan Bureau of Statistics (PBS).

According to Alfalah Securities Limited, Pakistan’s imports stood at USD 40.93 bn in 11MFY12 depicting an increase of 11.98%YoY from USD 36.55 bn last year. On the other hand, exports slowed down by 3.97%YoY to USD 21.5 bn in 11MFY12 (Jul – May) from USD 22.39bn during the same period last year, thus further raising the trade deficit.

In May 2012, exports were recorded at USD 2.16 bn declining by 5.92%YoY and 3.57%MoM against USD 2.296 bn in May last year and USD 2.24 bn in April 2012. Likewise, Imports during the period under review declined by 9.28%YoY while increased by 3.46%MoM to USD 3.89 bn imports in May 2012 compared with USD 4.288 bn in May 2011 and USD 3.76 bn in April 2012.

A rise in trade deficit is attributed to higher imports of petroleum products at a higher price from international markets along with higher imports of fertilizer and food products. The situation is further worsened as exports have failed to pick up despite continued devaluation of PkR against USD.

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