ISLAMABAD, March 10 Pakistans trade deficit widened to 2.104 billion dollars in February, compared with 1.30 billion dollars in February last year, official data showed on Monday.

Exports stood at 1.55 billion dollars in February this year, against 1.27 billion dollars in the same period last year. Imports were worth 3.66 billion dollars compared to 2.57 billion dollars last year.

The trade deficit for the first seven months of the fiscal year to February widened to 12.43 billion dollars compared to 8.94 billion dollars in the same period the previous year.

For the July-February period, exports were worth 11.707 billion dollars and imports were worth 24.14 billion dollars. Exports and imports in the corresponding period the previous year stood at 10.85 billion dollars and 19.79 billion dollars respectively.

Analysts say the import bill went up in February mainly because of a surge in oil imports. “The widening trade deficit is mainly because of an increase in the volume of oil imports, due to a rise in local demand for oil products, and the value of oil imports increased due to rising international prices,” said Farhan Mahmood, an analyst at JS Global Capital Ltd.

Analysts expect a trade deficit of 15 billion dollars for the 2007/08 fiscal year. Pakistan, which produces just over 65,000 barrels of oil a day, relies heavily on imported oil. (REUTERS)