Trade Deficit rises to USD 21.3 billion in FY12 – Alfalah Securities Limited

Karachi, July 11, 2012 (PPI-OT): The trade deficit of Pakistan has witnessed an increase of 36%YoY to USD 21.271 billion in FY12 from USD 15.604 billion last year as exports failed to pick up despite steep devaluation of Pak Rupee against dollar while the imports remained stubborn.

According to Alfalah Securities Limited, the government had projected trade deficit at USD 17.292 billion for FY12 in the budget which was breached by a wide margin. Exports dropped to USD 23.641 billion in FY12 from USD 24.810 billion in the previous year, depicting a decline of 4.71% while the imports jumped up by 11.13% to USD 44.912 billion as against USD 40.414 billion last year.

In June, exports slid by 11.60% YoY to USD 2.141 billion as against USD 2.422 billion during same month last year where imports in June reached to USD 3.979 billion as against USD 3.863 billion over the same month last year, depicting a surge of 3.0%. The widening of trade deficit would add difficulties on the external front which would exert pressure on the foreign exchange reserves of the country to fund the import bill along with debt repayment of foreign loans including that of IMF. However, the receipt of USD 1.2 billion amount under Coalition Support Fund and continued growing remittances would provide some support to the economy.