Trade deficit mounts to USD 13.17bn in 7MFY12, up 39.81%YoY – Alfalah Securities Limited

Karachi: Pakistan’s trade deficit has mounted to USD13.17 billion during the 7MFY12 period (July-Jan FY12) against USD 9.42 billion in the corresponding period last year, witnessing a massive rise of 39.81%YoY.

According to Alfalah Securities Limited, this substantial increase in trade deficit is attributable to rapidly rising imports against lesser exports, reaching to USD 26.33 billion and USD 13.15bn in the 7MFY12. The high import bill mainly influenced by costly crude oil and commodity prices, has risen by 16.81% in the 7MFY12 against USD 22.54 billion during the same period last year. On the other hand, the exports have remained almost flat, showing a rise of only 0.21%YoY in the 7MFY12 against USD 13.122 billion during the corresponding period. Alfalah Securities Limited expects the trade deficit to further widen primarily due to continuation of hefty imports while the exports would remain under pressure as a disruption in supply of electricity and gas to export sectors has hampered their ability to fulfil export commitments. Alfalah Securities Limited also anticipates the widening trade deficit to negatively affect the current account deficit further which may also lead in the depreciation of Pak-Rupee against US dollar.