ISLAMABAD, July 9: Pakistan’s trade deficit rose by 93.04 per cent in the outgoing fiscal year 2004-05 over the same period last year. Provisional figures obtained by Dawn on Saturday showed that in absolute term, trade deficit hit the highest level in Pakistan’s history of $6.216 billion during the fiscal year 2004-05 from $3.22 billion in the fiscal year 2003-04.

The government in the Trade Policy 2004-05 had projected the trade deficit at $3 billion, as against $3.199 billion registered during the fiscal year 2003-04.

The statistics showed that Pakistan’s trade deficit remained in the range of $1 billion to $2 billion during the last six years. The trade deficit stood at $1.740 billion in the year 1999-2000, $1.527 billion in 2000-01, $1.211 billion in 2001-02, and $1.2 billion in 2002-03.

Monthly statistics showed that the trade deficit increased by 27.25 per cent to $0.705 billion in the month of June 2005, as against $0.554 billion during the corresponding month last year.

The massive rise in deficit was attributed to robust increase of 33.36 per cent in import bill during 2004-05 over the last year. The import bill during 2004-05 reached to $20.641 billion, as against $15.477 billion during the same period last year. The import target of $16.7 billion was projected for 2004-05.

The growth in imports during the fiscal year 2004-05 was led by machinery imports, followed by oil, metal and food imports.

Official figures available with Dawn showed that large increase in imports of machinery, raw materials and intermediate goods was observed in the last two years, which continued in the fiscal year 2004-05.

Machinery imports up by over 46 per cent during the year under review. Imports of textile machinery increased by over 54 per cent.

Another major factor of huge trade deficit was the massive increase in world oil prices, as imports of petroleum crude and petroleum products emerged as the second largest item in import bill in the fiscal year 2004-05. The increase in the import offood items was contributed by imports of wheat, sugar and pulses.

On the other hand, exports recorded a growth of 17.687 per cent in 2004-05 over the last year.

According to provisional figures, the value of cumulative exports stood at $14.425 billion during the fiscal year 2004-05, as against $12.257 billion in the fiscal year 2003-04.

The exports surpassed the projected target by 5.29 per cent during the year under review when compared with the target of $13.7 billion announced for the same year in the Trade Policy 2004-05.