ISLAMABAD, June 9: Pakistan’s trade deficit swelled to an unprecedented $18.756 billion in the first 11 months of the current fiscal year, up 52 per cent from $12.311 billion for the same period last year.

The extraordinary increase in trade deficit is the outcome of the spending on import of oil, foodstuff and consumer items like mobile phones.

On import of wheat alone, Pakistan spent $770 million to overcome its shortage during the outgoing fiscal year.

The oil import bill may swell to over $11 billion by the end of the current fiscal year, against over $7 billion last year, an increase of 40 per cent.

Analysts said the trade deficit this year might reach $21 billion. Last year, the deficit for the whole year was $13 billion.

Fall in agricultural yields also pushed the government to spend foreign exchange reserves during the current fiscal year, while bill for importing industrial raw materials and machinery declined during the period under review. The period also saw industrial output declining by four per cent.

Official figures obtained by Dawn on Monday showed that the import bill had increased by 29.56 per cent to $35.943 billion in July-May 2007-08, against $27.743 billion last year. It increased by 3.883 per cent in May 2008 when it stood at $3.883 billion, against $2.750 billion in the same month last year.

Unexpectedly, exports grew by 11.37 per cent to $17.186 billion in July-May 2007-08, against $15.432 billion last year. The export growth recorded an increase of 22.61 per cent in May 2008 when it stood at $1.946 billion, against $1.58 billion last year.

The government has projected a $19.2 billion export target for 2007-08 on the assurance of the textile industry to edge up its exports to over $11 billion. The textile exports has witnessed a negative growth over the past few months and it may not cross even the $10-billion mark this year.

A commerce ministry official said that the export target was likely to be achieved by end-June. The rupee depreciation and robust growth in non-textile exports would help in achieving the target, the official added.

Official statistics showed that Pakistan’s current account deficit surged to between 7.3 and 7.8 per cent of GDP. The fiscal deficit has spiralled to close to nine per cent but the government expects to bring it down to 6.5 per cent.