ISLAMABAD, Jan 11: The country’s trade deficit widened by 15.28 per cent during the first half (July-December) of the fiscal year 2006-07 over the same period last year. The trade gap totalled $6.459 billion, the highest ever in the country’s history, compared to $5.603 billion posted during the same period last year, recording an increase of $856 million.

Official figures released here on Thursday by Federal Bureau of Statistics (FBS) indicated that in case the exports did not pick up in the second half (January-July) FY07, the trade deficit was expected to cross the $13-billion-mark.The government in the trade policy projected a trade deficit of $9.4 billion, exports at $18.6 billion and imports at $28 billion for the current fiscal year.

When contacted Commerce Minister Humayun Akhtar Khan told Dawn on Thursday that the slow growth in export was due to the stronger export base of the last year. He said the exports grew at the rate of 20 per cent during the same period last year.

“In the second half (January-June) of the current fiscal year the growth in exports will pick up momentum,” the minister hoped.

Regarding imports, the minister claimed that the growth in imports was also on the decline as compared to the same period of the last year.

The import bill reached to record $14.895 billion during the first six months of the 2006-07 as against $13.650 billion the same period last year, indicating an increase of 9.12 per cent.

The growth in imports remained lesser during the period under review owing to the fact that last year the oil prices had reached the highest mark of $78 per barrel, besides edible products like sugar, wheat, pulses etc., were imported in large quantities.

Exports managed to record a marginal growth of 4.83 per cent to $8.436 billion during the July-December 2006-07 over $8.047 billion exports materialised the same period last year.

The performance of all export-oriented sectors has not been encouraging despite having received huge cash subsidies from the government during the period.

The statistics reveals that the country is set to post a record trade deficit by the end of the fiscal year on June 30, 2007 as export has not yet picked up momentum though the commerce ministry has signed many preferential trade arrangements with many countries including China.