ISLAMABAD: Export of merchandise fell by 13.44 per cent to $1.932 billion during March 2015 from $2.232bn in the same month last year, causing a higher than expected trade deficit, suggested data of Pakistan Bureau of Statistics (PBS) on Tuesday.

No explanation was given by the commerce or textile ministries for the third consecutive month decline in exports especially of textiles. Even the Trade Development Authority of Pakistan did not comment on the cause of missing trade goal.

Dr Ashfaq Hassan Khan, former economic adviser, found the trend disturbing. He said the exports were facing supply-side bottleneck as well as misaligned exchange rate.

The exports witnessed a decline in terms of value, reflecting that export proceeds did not get advantage from depreciation of the rupee in past few months.

This fiscal year’s export target was set at $26bn. The export proceeds during the first nine months (July-March) of 2014-15 fell by 5.95pc to $17.937bn as against $19.072bn in the same period last year.

As a result, the trade gap widened by 15.42pc to $16.113bn during July-March 2014-15 as compared to $13.96bn in the same period last year, mainly due to the double-digit fall in the country’s export proceeds. The imports also witnessed a partial growth during the period under review.

On a monthly basis, some let-up was shown in imports volume because of substantial decrease in the imported price of edible oil, crude oil, steel products and some food items in the international market.

In March 2014-15, the trade deficit was up by 13pc to $1.586bn from $1.395bn in the same month last year, thus reflecting some contraction. The deficit was at $19.981bn in 2013-14.

During the month, the import bill fell to $3.518bn from $3.627bn in the same period last year, a drop of 3.01pc.

However, during July-March 2014-15, the import bill reached $34.05bn as against $33.03bn in the same period last year, an increase of 3.08pc.

The finance ministry has estimated a drop of $4bn in import bill of oil, because of falling oil prices in international market. This saving would help reduce pressure on foreign exchange reserves.

Imports, during the last fiscal year (2013-14), witnessed a marginal growth of 0.36pc to $45.11bn from $44.95bn over the preceding year.

Published in Dawn, April 15th, 2015

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