Trade deficit widens 5.5pc to $16.909bln

KARACHI: Pakistan’s trade deficit rose 5.5 percent to $16.909 billion for the July to March 2016 period, compared with a deficit of $16.027 billion for the same period last year, as the country’s imports continued to outweigh the falling exports.

The Pakistan Bureau of Statistics (PBS) data on Tuesday showed that the import and export gap stood at 52 percent in the first nine months of the current fiscal year.  

Exports fell 12.92 percent to $15.606 billion in July-March 2015/16 over the similar period a year earlier.

Chairman Tariq Saud All Pakistan Textile Mills Association (Aptma) attributed the fall in exports to stuck refunds and unutilised production capacity of the textile industry.

“Around Rs200 billion of refunds are still stuck with the government,” Saud said. “The government is settling refund claims of below five million rupees.”

Aptma members, which he claimed fetch more than 72 percent of $13 billion annual textile exports revenue, have heavy refund claims.    

The association chief further said the government has yet to slap 15 percent regulatory duty on polyster. “Its dumping is affecting the local industry… restraining their ability to exports,” he said. “We must be given a level-playing field. We have already lost our competitiveness in the international markets.”

Saud hoped that restoration of gas to the industries in the Punjab might change the situation.

The PBS data showed that imports shrank 4.22 percent to $32.515 billion during July-March period.

Equity analyst Adnan Sami Sheikh at Taurus Securities said the soft international oil prices contained the rise in import bill.  

In March, exports decreased 2.74 percent to $1.742 billion over February and they declined 9.55 percent over the same month a year ago.

“I think this number must be reflecting the weak textile exports,” remarked Sheikh.

Imports increased 8.78 percent to $3.594 billion in March over February and inched up 3.78 percent over the same month a year earlier.

The PBS data further showed that balance of trade increased 22.41 percent to $1.852 billion in March 2016 over February and rose 20.49 percent over March 2016.