KARACHI (July 03 2007): The country's exports have missed the target of $18.6 billion set for the fiscal 2006-07 by over 6 percent, sources in the commerce ministry told Business Recorder.

According to the unconfirmed figures, the exports stood at $17.5 billion for the 12-month period ie July-June 2006-07 as against $15.48 billion during July-May 2006-07 thus registering a 26.25 percent growth on MoM basis.

The exports in June grew by over 26 percent to $2.02 billion against $1.6 billion in May taking the export figure to $17.5 billion for the year. The trade deficit for the year could not be ascertained, as the trade figures are in the process of compilation that would take another four weeks.

Trade analysts said that under performance of the textile sector coupled with under-target exports of rice, surgical items, footwears, fruits, gems & jewellery and fisheries remained the reasons for the missing of export target, which was quite realistic.They said the Trade Policy 2006-07 had emphasised that due to attention would be accorded to non-traditional export items like gems & jewellery and engineering goods etc, but the idea was not properly worked out and was not properly implemented.

Analysts said that non-traditional export items particularly engineering products had a big international market and had a lot of potential, which should be tapped, adding the Engineering Development Board (EDB) and the Trade Development Authority of Pakistan should explore the markets for these products.

It may be mentioned here that at present, the engineering item exports stands at around $300 million and had due attention given to the sector it would have crossed $1 billion mark.

The government projected import bill at $28 billion for the current financial year whereas the export target was set at $18.6 billion for the whole year, which translates into $9.4 billion trade deficit. Although the import figures, at present, are not available, the signs of a trade deficit around $14 billion are visible, which would have been highest ever in the history of the country.

The all-time high trade deficit is causing adverse impact on the current account deficit and the balance of payments as well as on the health of the rupee, however, the increased foreign direct investment and growth in remittances is helping make up the losses to some extent caused by the widening trade deficit. It may be mentioned here that the services exports for the year ending June 30, 2007 stood at $2.5 billion.

Copyright Business Recorder, 2007