ISLAMABAD, Sept 5: Merchandise exports of Pakistan surged by 11.96 per cent during the first two months of 2003-04, reducing the budget deficit by 44.13 per cent, as compared to corresponding period of previous year.

Exports during the period under review, according to aggregate foreign trade figures released by the Federal Bureau of Statistics here on Friday, stood at $1925.15 million and, in local currency at Rs111.21 billion. In rupee, the growth was up by 8.44pc.

A 6.73pc increase was recorded in respect of imports to $2024.05 million (Rs116.92 billion). In rupee, the imports moved up by 3.36%.

Thanks to depressed imports, the trade gap too remained modest at $98.90 million (Rs5.71 billion in local currency) during the period July-August 2003.

Particularly significant is the improved ratio of exports to imports, covering 95.11pc of the latter. During the same period of previous year, the portion of import bill paid for by exports was 90.67pc.

Furthermore, the export target set by the government for 2003-04 is $11.2 billion. On that basis, the target for two months comes to $1866 million. Thus the export performance has shot ahead of the target during the period under review.

In August 2003, exports are reported as $1034 million - 16.27pc more than during July 2003. In local currency, the exports stood at Rs59.81 billion, up 16.36pc over the previous month.

As regards imports, these remained sluggish with an increase of only 2.45pc in dollars and 2.53pc in rupee. In absolute terms, imports stood at $1024.29 million (Rs59.19 billion).

When compared to the corresponding period of previous year, the exports registered increases of 14.64pc and 5.68pc in dollars and 11.32% and 2.62% in local currency, respectively.

The trade deficit in August 2003 stood at $10.67 million, down by 109.74%.