July-January trade deficit soars to $17.43 billion

Pakistan's trade deficit rose to $17.428 billion during the first seven months (July-January 2017) of the current fiscal year, up by 28.68 percent from $13.544 billion for the same period a year before, according to Pakistan Bureau of Statistics (PBS). Provisional trade data released by the PBS Thursday showed a decline of 3.21 percent in exports during July-January 2017 with exports contracting to $11.685 billion in the first seven months of the current fiscal year as compared to $12.073 billion for the same period a year ago.
However, imports increased to $29.113 billion in July-January 2017 as compared to $25.617 billion for the same period of last fiscal year, showing an increase of 13.65 percent. Analysts say that increase in trade deficit is not a good omen for the country and may create balance of payment problems with looming repayment of foreign debt.
On the other hand, the government's earnings have been on decline and cannot support the balance of payment position. The analysts say that increase in export and Foreign Direct Investment (FDI) is critical to support the balance of payment and meet the financial requirements of the country. Trade deficit increased to $2.957 billion in January 2017, up by 75.18 percent from $1.68 billion for the same month a year ago. A nominal increase of 0.74 percent was noted in the exports in January 2017 while increase in imports was substantially high, 37.11 percent. Exports have increased to $1.780 billion in January 2017 from $1.767 billion for the same month a year before while imports have increased to $4.73 billion from $3.45 billion.
Trade deficit in January 2017 was recorded at $2.957 billion, which was 7.10 percent higher from $2.761 billion for the previous month of December 2016. An increase of 3.07 percent in exports and 5.55 percent in imports was recorded by the PBS in January 2017 over the previous month. Exports increased to $1.78 billion in January 2017 over $1.72 billion a year ago while imports have increased to $4.7 billion as compared to $4.48 billion.