Rising price of oil in international market has caused Pakistan to suffer a huge $9.427 billion trade deficit in the first 10 months (July 2005-April 2006) of 2005-06 fiscal year. During the same time of last fiscal year, this figure was just $4.868 billion and thus the increase has been 93.65 only. From July 2005 to April 2006, Pakistan's import bill was $22.95 billion while it exported $13.52 billion of goods and services. This year, import of petroleum is going to cost the Pakistani economy $2 billion more than last year.
Another reason of such a huge increase in the trade deficit is the fact that the government expected that the export income will be $17 billion. I do not know why the export target did not materialize but I can only predict that due to the ongoing heat wave and coming drought, this trade deficit will only increase in the last two months of this fiscal year. Some, observers are predicting of $12 billion of trade deficit by the end of this year and I think that the figure may even become a bit higher.
What is your idea about it?
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Tracked on: May 18, 2006 9:09 AM | Permalink to Trackback