July-November trade deficit widens by 19.9 percent YoY

ZAHEER ABBASI

ISLAMABAD: Trade deficit has widened by 19.9 percent during the first five months of the current fiscal year as compared to the same period of the last financial year, according to Pakistan Bureau of Statistics. Provisional trade data released by the PBS Tuesday showed a decline of 4 percent in exports and an increase of 8.83 percent in imports during July-November 2016 as compared to the same period of last fiscal year, which led to increase in trade deficit.

The trade deficit increased to $11.7 billion in the first five months of the current fiscal year from $9.8 billion for the same period a year ago. During July-November 2016, the country's exports remained $8.1 billion, 3.93 per cent lower as compared to $8.5 billion for the same period of the last fiscal year. Imports were $19.9 billion during the period, 8.83 per cent higher from $18.3 billion for July-November 2015.

Analysts say that decline in exports are going to make balance of payment (BoP) position challenging as huge debt repayment has lined up during the next couple of years. They added as exports have not shown any growth owing to internal and external factors, the country's excessive external borrowing would remain unsustainable as long as exports are not given priority. They also referred to the exports incentive package, agreed after a series of discussion with stakeholders, which has been put on back burner.

There was a trade deficit of $2.4 billion during November 2016, 14.3 per cent up as compared to $2.1 billion for November 2015, subsequent to considerable increase in import ie 10.81 per cent as opposed to 6.21 per cent increase in exports. Exports grew to $1.76 billion in November 2016 from $1.65 billion in November 2015 while imports increased to $4.2 billion in November 2016 from $3.8 billion in November 2015.