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Trade deficit surges by 28 pc to Rs 396.96 billion

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The country’s trade deficit has surged by 28.2 percent to Rs 396.96 billion during the first eight months of the current fiscal year 2013/14 compared to an increase of 25.5 percent during the same period of the previous year.

The trade deficit with India has increased by 29.1 percent during the review period compared to a growth of 28.8 percent in the same period of the previous year.

Similarly, the trade deficit with other countries increased by 26.5 percent compared to an increase of 19.5 percent during the same period of the previous year.

Due to high growth of imports compared to exports, the ratio of exports to imports declined to 13.3 percent in the review period from 14.1 percent a year ago, according to the central bank.

The merchandise imports surged by 27.0 percent to Rs. 457.85 billion while such imports had risen by 22.1 percent to Rs 360.56 billion during the corresponding period of the previous year.

The imports from India went up by 28.1 percent during the review period compared to an increase of 24.2 percent in the same period of the previous year. Likewise, imports from other countries rose by 24.8 percent compared to an increase of 18.2 percent in the corresponding period of the previous year.

Meanwhile, the merchandise exports went up by 19.4 percent to Rs 60.90 billion during the review period compared to increase by 5 percent to Rs 51.01 billion during the same period of the previous year.

The export to India increased by 21.9 percent and 14.7 percent to other countries during the period.

The exports of zinc sheet, cardamom, juice, and stone and sand, among others increased to India. Likewise, exports to other countries went up primarily due to the increase in export of woolen carpets, readymade garments, herbs, and pashmina, among others.