ISLAMABAD: Pakistan’s trade deficit touched a record high of $34 billionduring the eleven months of the outgoing financial year 2017-18.
This poses a major challenge for the next government to rein in thewidening current account deficit as trade deficit increased 13.3 percentfor the first eleven months (July-May) of FY18, according to official data,reported *Dawn.*
In May, the trade deficit increased to $3.76 billion posting an 8.6 percentyear-on-year (YoY) increase.
The last FY17 had witnessed trade deficit to a then-record high of $32.58billion, surging 37 percent from the previous FY16.Imports clocked in at $55.3 billion, posting a 14 percent rise duringJuly-May FY17 compared to $48.54 billion in the corresponding period oflast year.
The import bill posted a 15 percent on a month-on-month basis, touching$5.9 billion in May against $5.09 billion in April 2018.
The commerce ministry said the imports in May had exhibited an increasemainly because of high oil prices and rise in volumes of imports of fuelsand machinery to overcome energy deficit.
The total increase in imports during July-May FY18 was around 14 percentcompared to corresponding last FY17.
The increase in import bill was attributed to an increase in arrival ofpetroleum products, food products and capital goods.
And exports continued their recovery which started early last year. Exportsexhibited figures of above $2 billion for the third month running sinceMarch 2018 and during May it posted an increase of 32 percent year-on-yearcompared to same month last year.
The highest ever month-on-month (MoM) increase was posted in dollar termsas export proceeds rose to $2.14 billion in May 2018 against $1.62 billionin May 2017.
Yearly export growth reached 15 percent for July-April FY18 comparedagainst 14 percent in the corresponding period of last year.
Overall exports in July-May FY18 touched $21.32 billion, which is roughly$1 billion more than annual figures for FY17.