ISLAMABAD: Pakistan’s exports of merchandise fell by over eight per cent in February 2013 from a year ago after witnessing successive growths in the past four months.

Since October 2012, exports rebounded because of a slight rise in demand from recession-hit key markets of Europe and the US and improvement in domestic production.

Exports dipped to $1.835 billion in February 2013 from $2.01 billion in the corresponding month last year, showed data of the Pakistan Bureau of Statistics (PBS) released on Tuesday.

Experts predict that export proceeds may witness slight decline in the months ahead because of fear of slump in the global economy.

Exports rose by 5pc during July-February 2012-13 while imports declined 2.41pc.

Exports rose to $15.884 billion in July-Feb from $15.128 billion in the corresponding months last year, showing an increase of 5pc.

In 2011-12 exports stood at $23.641 billion as against $24.810 billion in the previous year.

For the current fiscal year, government projected export proceeds at $27 billion.

The commerce ministry has already approved a three-year framework envisaging a range of support schemes for 14 identified sectors for promotion of exports. However, its implementation was linked with the release of funds by the finance ministry.

In July-January 2012-13, the increase in exports was mainly driven by increase in textile and clothing sectors. The output in textile and clothing sector has increased because of unabated supply of gas and electricity to the sector in the last few months.

The current account in the first seven months (July-January) was still in surplus of $62 million. Import bill declined by 2.41 per cent to $29.069 billion in July-Feb from $29.788 billion over the same period last year.

On monthly basis, imports dipped by 2.28 per cent to $3.383 billion in February from $3.462 billion over the corresponding month last year.

As a result, Pakistan’s trade deficit in merchandise fell by over 10 per cent in the eight months of the current fiscal year from a year ago as imports dropped while exports witnessed a paltry growth.

The trade deficit narrowed down to $13.185 billion in July-February period of the current fiscal year as against $14.660 billion over the corresponding period of last year.

In 2011-12 the trade deficit swelled to $21.271 billion in from $15.604 billion in the previous year mainly driven by import of consumer goods and higher international crude oil prices.

For 2012-13, the government has forecast trade deficit at $17.126 billion which reflects low demand from manufacturing side.